The Reserve Bank of Australia again kept interest rates steady and said recent economic developments had strengthened its view that rates can remain low for some time to come. They cited a pick-up in housing and consumption that was offset by a subdued labour market and slow wage growth.
The RBA also states that despite the fall in the local dollar to date, they anticipate further falls as the currency remains high for historical standards. Further falls will help to stimulate growth and investment from offshore, which is likely to further fuel housing prices and demand.
Auction clearance rates remain high at 87% for March, limited stock and strong buyer demand continues to drive this outcome.