Graham Cooke, head of consumer research at Finder, said there was no solid agreement on what an economic recovery looks like in Australia among the panel. Brisbane is forecast to have the biggest gains in terms of house price growth, according to experts. All other major cities except Canberra are expected to remain stagnant on apartment price growth. Graham Cooke said expert forecasts for property prices were getting more and more grim for homeowners.
Mark Crosby of Monash University said allowing Aussies to use their super for housing would only increase prices. Dr Angela Jackson of Impact Economics and Policy said the measure undermines our retirement income system. Stephen Koukoulas, Market Economics predicted a rate rise : "[The decision will be driven by] high inflation and a need to [move] policy towards neutral. Shane Oliver, AMP HOLD : "The RBA's objective of full employment has been reached, wages growth is picking up and inflation is pushing well above target with a rising risk that inflation expectations will start to rise in which case it will become self-feeding, and the Budget will add in more stimulus this year.
So the conditions for a rate hike will be in place by June. They 'should' move sooner rather than later while price pressures are hot, but they are likely to counsel patience for a while. The tightening cycle should pause next year at around 1. They want to wait for stronger wage growth to emerge β although higher inflation expectations may trigger an earlier rate hike. The RBA, therefore, needs to act.
So, I remain of the view that the first increase will come after the June quarter CPI β which means the August meeting. Mark Brimble, Griffith University HOLD : "While rate rise expectations have come forward, the RBA will be keen to continue to support the economy through the current Ukraine crisis and obtain a clearer picture of the degree to which inflation pressures are transitory in nature.
There is also value in keeping the currency subdued with the strength of export markets at the moment. RBA will seek to get ahead of further inflation given monetary policy lags etc. Sarah Hunter, KPMG HOLD : "The economy is now operating close to full employment and momentum remains positive, notwithstanding the downturn in confidence associated with the conflict in Ukraine; it's worth noting that the increase in commodity prices has actually increased national income via export revenues , and it will give the Federal government space to help ease cost of living pressures in the upcoming budget.
