One of the country’s leading economists is predicting the cash rate will drop to two per cent before the end of this year. Westpac’s chief economist Bill Evans, says he expects a further two rate cuts between June and December in 2014.
However Evans conceded he’s probably the “last drowning man who thinks that’s possible”, but believes the Reserve Bank’s views on why interest rates are on hold, or likely to rise, are too optimistic. Evans has proven himself one of the nation’s most accurate predictors of interest rate movements in the past few years, so it’s worthwhile listening up.
In other news, Sydney newest suburb is almost finished. New South Wales Minister for Planning and Infrastructure, Brad Hazzard, has announced the suburb of Bungarribee will be finalised three years ahead of schedule.
The suburb, also known as Bunya, is located 33 kilometres west of the CBD, and will eventually house up 3000 new residents. Hazzard says the take-up rate by new owners has exceeded expectation with almost 80 per cent of the project’s 820 allotments sold in under three years.
The public will get to have their say on property laws in Queensland because two issue papers looking at seller disclosure requirements and body corporate lot entitlements have been released by Queensland’s Attorney-General Jarrod Bleijie.
The papers are part of a Queensland University of Technology review of property law in the state, and they’re seeking consultation with the public. Bleijie says QUT will initially focus on the effectiveness of the current seller disclosure obligations and whether current body corporate lot entitlements need reform.