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February Cash Rate Unlikely to Change

By Kevin Kelly

There is unlikely to be any change to the official cash rate when the Reserve Bank of Australia (RBA) board meets next week (February 4), experts believe.

The consumer price index (CPI) for the December quarter was stable, suggesting the RBA will keep the cash rate at 2.5 per cent for a while longer.

Peter Bushby, president of the Real Estate Institute of Australia (REIA), is among those who believe no change is on the horizon.

"In the December quarter, the consumer price index rose by 0.8 per cent and the annual inflation rate is now 2.7 per cent. These figures are well within the RBA's target zone of 2-3 per cent," he commented.

Similar sentiment was echoed by the Housing Industry Association (HIA), which also anticipates the cash rate will stay at an all-time low for the foreseeable future.

This could encourage people to take a look at real estate in Bunbury and go in search of property of their own, as tracker rate mortgages prove favourable at the moment.

However, the HIA's senior economist Shane Garrett believes more needs to be done to improve housing affordability across the nation and give people further incentives to get onto the property ladder.

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