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Sydney's property price increases seems to be the common reason cited for the Reserve Bank of Australia decision to hold interest rates at 2.25 per cent for the second month in row on Tuesday. Although it looks highly likely to cut them as early as its next policy meeting on May 5.
The vote against another cut for now still leaves the cash rate at the lowest level since at least the 1960s. The Australian dollar, which had been trading down on expectations of further easing, spiked more than 1 per cent on the decision, to just below US77¢ in late local trade.
Amid concerns from the regulators about accelerated price growth, what does that mean for investors? Right now there are great opportunities to secure fixed rates from lenders for up to 5 years at extremely manageable (less than 5%) interest rates.
Read more in the Sydney Morning Herald