RBA Rate Rises to 4.85% while unemployment rises & housing approvals fall
RBA Rate Rises to 4.85% while unemployment rises & housing approvals fall
The Reserve Bank of Australia (RBA) has lifted the cash rate to 4.85% sending a message to hold on tight.
Australia’s unemployment rate rose to 4.7% in September, with employment falling by 39,300 and the participation rate declining to 66.8%.
The softer jobs market strengthens the argument for caution on further interest rate increases, although inflation will remain central to the Reserve Bank’s decisions.
Total dwelling approvals fell 6.1% in August.
Private house approvals rose 3.7%,
Private dwellings excluding houses fell 21.2%.
Weekend auction results remain uneven, with Sydney’s clearance rate falling to 51% while Melbourne’s improved to 58.5%.
Weak confidence is giving buyers more negotiating power, while the slow housing pipeline remains a concern for future supply.
For investors with secure finances and a long investment horizon, current conditions warrant careful preparation and selective buying.