Yesterday, May 01, 2012, industries bodies were holding their breath as they wait for the country’s official cut rate announced by Reserve Bank of Australia (RBA). The four consecutives months keeping the interest rate on hold at 4.25% but RBA released yesterday that country’s official cash rate by 50 basis points to 3.75%. The big four banks namely Westpac, ANZ, NAB and Commonwealth are remained silent with the official cut rate. Only ANZ spokewoman said, “the bank would not make decision until May 11,” while the three banks remained quiet.
Dana Masson, Senior Economist with the Chamber of Commerce and Industry WA said, it was good news for WA employers who are struggling due to sluggish trade.
Australian Retailers Association President Roger Gillespie said, members were “rejoicing” over the decision, but were now waiting for the big banks to follow through.
ABN Group Managing Director Dale Alock said the news would provide a welcome boost to consumer confidence and help West Australians get out of the “rental trap”.
These are the views and opinions from different sectors in the industry. Would the released interest rate cut really helps to bring back the confidence of the home buyers? Is this the perfect timing to support the recovery of the Western Australian Property Sector? Well, we really don’t know because we still depending on the big four banks to pass on the full reduction. After the first cut rate for five motnhs, still industry leaders don’t lose hope and still believing that this is not the first and the last cut rate this year.