Few people were surprised yesterday when the Reserve Bank of Australia decided to leave the cash rate on hold at 3.0%. Reserve Bank governor Glen Stevens cited an increasing level of residential investment, dwelling prices and higher rental yields as contributing factors in the decision to maintain the current cash rate. While the cash rate has been at its lowest level since the GFC, house prices have experienced month on month growth for both January and February 2013. January posted a healthy 1.3% rise in capital city dwelling prices, while February recorded a 0.3% price increase.

 

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