Sydney Property Market Update 11/05/2019
For the first time in many a moon our attention was firmly on interest rates this week.
The likelihood of any significant movement in either direction has always been hotly debated amongst economic pundits and forecasters but not with much hope of the Reserve Bank actually doing anything - until now.
As I said last week I think they made the right call to wait at least another month.
To have rates that were untouched for nearly three years suddenly change barely ten days out from a Federal election isn't a wise move in my opinion. There was no urgent need to act so swiftly.
It is highly likely now that we will see rates drop much sooner rather than later.
What is unlikely however, are the major banks passing on the entire amount to their customers.
A rate cut is always a great opportunity for our friends at the banks to improve their own profit margins without it looking like the public relations disaster it always is when they do it independent of any movement at the Reserve.
So buckle up and get ready because I don't think they'll pass on even half of the expected 25 basis points reduction everyone is expecting.
I hope and am happy to be proven wrong.
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