Tuesday's Reserve Bank of Australia (RBA) monetary policy decision reiterated that interest rates will remain "lower for longer". The Board announced they will not increase the cash rate until inflation remains within the 2-3% range, which they do not expect to occur until 2024 at the earliest.
In addition to keeping the cash rate at the record low 0.10%, the Board also announced a further $100 billion in Quantitative Easing (QE) to purchase federal and state government bonds.
We expect these measures will continue to be supportive of property and share prices over the medium term, particularly due to the RBA's "lower for longer" approach to cash rates.
The full February statement can be accessed here.
If you would like to discuss further, please call Richard Bennett (07 3876 8131 or 0412 055 702) or Tony Garnham (07 3184 2520).