The $1 million dollar question: Will 2019 see a further reduction in interest rates?

The $1 million dollar question: Will 2019 see a further reduction in interest rates? 01/05/2019

“For many months, the Reserve Bank has told us the next move in interest rates is likely to be up, albeit not for some time. However in a recent speech, the RBA’s Deputy Governor Guy Debelle cited that with the dramatic fall in Sydney and Melbourne property, the Reserve Bank was not reviewing its monetary policy with further interest rate cuts being   possible in 2019”
 
 So what would a further interest rate cut mean for Perth’s property prices…
In the now likely event that we see the RBA cash rate reduced below its current historical low of 1.5% and on the basis that the major banks pass on any official cut to the
householder, it is likely to have an immediate positive effect on the WA property market, making the average Perth property more affordable then EVER!!!
Resulting effects would be a dramatic increase in number of property transactions,
reduced average selling times together with ultimately an increase in property values.
Sam Saffioti

Source: Sam Saffioti with extract from ABC News