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Official Cash Rate Remains at 2.5% for Australia

By Jamil Allouche

Inflation is predicted to remain within target over the next two years, while the official cash rate (OCR) has remained at 2.5 per cent, according to a March 4 statement from Reserve Bank of Australia (RBA) Governor Glenn Stevens.

Governor Glenn Stevens highlighted points favourable to home buyers in the statement and the decision of the RBA board to leave the OCR may benefit those looking to buy property in Brunswick, Carlton or Coburg. 

Melbourne saw consistent capital growth last year, with house prices climbing by 8.6 per cent year-on-year to December 2013, according to the Australian Property Monitors.

Buying real estate in a city with consistent growth is always a wise move and the consistently low OCR makes this more possible. 

However, the popularity of Melbourne has increased the competition. Mr Stevens noted that dwelling prices "increased significantly" during 2013 nationwide.

Therefore, it's promising that solid growth in the housing construction sector has been anticipated by the RBA.

This could place downward pressure on house prices by increasing the supply of quality dwellings.

For now, "Australia's monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target," noted Mr Stevens. 

It seems 2014 looks promising for home buyers of property in Carlton and Brunswick.

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