RBA holds rate while property prices soar

• by Chan & Naylor
• in Property Investment
• 02/04/2014

Sydney’s median dwelling price surged by almost $100,000 over the past year, and it’s unlikely runaway property prices will be derailed by interest rate rises any time soon.

The RBA has decided to keep interest rates on hold at a historically low 2.5 per cent.

The low interest-rate environment has fuelled the rapid growth in the housing market, prompting the RBA to warn borrowers and banks against property speculation over the past few weeks, reports Glenda Kwek and Toby Johnstone on the Herald’s front page.