Property and Finance Brief 22 March 2013
Some recent feedback from clients Rachelle and David
Your relaxed nature and ability to relate to our circumstances. It was important for us to have confidence in not only you but the process you were educating us on. The starting point was being able to relax. We were also pleasantly impressed by the depth of knowledge you appeared to have across your field.
Housing affordability lifts in December quarter
This is the eighth consecutive quarter of increase in the index which has seen affordability close to levels seen during the GFC. Regional markets are at levels seen during the early 2000s.
Chinese manufacturing expands in March
PMI is a widely watched barometer of the health of China's economy, with a reading above 50 indicating expansion.
China's economy expanded 7.8 per cent in 2012, its slowest pace for 13 years, in the face of weakness at home and in key overseas markets. But growth accelerated in the final three months of last year to 7.9 per cent, snapping seven straight quarters of weakening expansion.
RBA maintains easing bias
"Interest rate sensitive parts of the economy continued to show signs of responding to these low rates and it was likely that this still had further to run," the RBA said in the minutes.
The central bank kept the cash rate on hold at its record low level of three per cent at the meeting, but acknowledged further rate cuts may be necessary in the future.
"With inflation likely to remain around the middle of the inflation target, members judged that there would be scope to cut the cash rate further to support demand, should that be necessary."
The RBA said gross domestic product (GDP) growth was likely to remain a little below its long-term trend in 2013 but would pick up after that, with signs investment away from the mining sector would continue to improve.
It also said a further moderation in wages growth would help keep inflation around the middle of the RBA's two to three per cent target range.
House prices up 3.8%