Interest rates stay on hold - for now
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Interest rates stay on hold – for now

The new-look RBA Board takes a careful middle road as mortgage holders continue to feel the pinch

By KANEBRIDGE NEWS
Tue, Oct 3, 2023 10:25amGrey Clock 2 min

Interest rates will stay on hold this month following a meeting of the RBA Board today.

In a widely anticipated move, the announcement comes despite an uptick in the rate of inflation in August, which saw a rise from 4.9 percent in July to 5.2 percent.

All four of the big banks predicted the official rate to remain steady at 4.1 percent for the October meeting, although NAB has forecast that a further 0.25 percent increase was still an option, possibly next month. 

The board meeting was the first with Michele Bullock as governor, following the departure of Dr Philip Lowe last month. Dr Lowe was criticised for telling borrowers back in March 2021 that rates were ‘likely to remain at current levels’ until 2024. However, the RBA began raising the cash rate in May 2022 from 0.1 percent to 4.1 percent over a 12-month period in efforts to curb the rate of inflation.

Inflation peaked over the 12 months to December 2022 at 7.8 percent, well above target levels of between 2-3 percent.

CEO of the Real Estate Institute of NSW, Tim McKibbin, said despite the slight increase in inflation, it was important that rates remained on hold this month as the impact of earlier rate rises continues to play out.

“Until last week’s concerning CPI figures, which show the battle against inflation is far from over, it seemed a foregone conclusion that the new-look RBA Board would leave rates unchanged when it meets tomorrow,” he said. 

“REINSW believes it is appropriate for rates to remain steady for at least the short-term.”

CoreLogic Research director Tim Lawless said the rate of rising home values had slowed over the past quarter as cost of living pressures kept a firm grip on household budgets.

He noted that the Board had sought a balance between supply and demand in the economy.

“Clearly inflation remains high on the RBA’s risk radar,” he said. “Higher fuel and energy prices, alongside persistently high services and rental inflation have the potential to trigger another rate hike later this year.

“Logically, the RBA will be waiting to see September quarter inflation data, released the week ahead of the RBA’s November meeting.  With this in mind, the November meeting will be closely watched.”

 



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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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The four-storey, lemon-hued villa boasts more than 16,000 square feet of living space and historic character and charm by the bucket load

By LIZ LUCKING
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A 14th-century villa in the hills overlooking Florence, Italy, has hit the market for €12 million (US$13 million).

Surrounded by cypress trees, vineyards and olive groves, the quintessential Tuscan home was built for the Davanzati family—who were powerful bankers, merchants and patrons during the Italian Renaissance who have a museum named after them in the heart of the city. The villa was one of the family’s multiple country retreats, according to Lionard Luxury Real Estate, which brought the home to the market earlier this month.

Courtesy of Lionard

The four-storey, lemon-hued villa boasts more than 16,000 square feet of living space and historic character and charm by the bucket load.

The ballroom has a giant skylight.
Courtesy of Lionard

On the ground floor there are ​​a number of reception rooms and open-air living areas, with many of them boasting antique paintings, tapestries and stately fireplaces made of marble or carved stone.

The most “magnificent” room, according to Lionard, is the winter garden hall, a ballroom with stuccos, loggias and towering vaulted ceilings, illuminated by an Art Nouveau skylight.

Courtesy of Lionard

On the first floor are multiple double bedrooms and an antique library, and the second floor, while in need of renovation, offers the possibility of creating up to 12 en-suite bedrooms. The villa’s tower has a “delightful sitting room and a rooftop terrace offering a breathtaking view of the city of Florence,” the listing said.

The villa has ivy-covered loggias.
Courtesy of Lionard

The basement, meanwhile, has a cellar with brick vaults that are perfect for wine lovers. An elevator runs between the levels.

Outside, the grounds have well-kept gardens, rolling lawns, a fountain, ancient wells and ivy-covered loggias.

Mansion Global couldn’t determine who is selling the villa, or when they acquired it.

The property is “an oasis of peace,” the listing said, and “one of the most exclusive historical estates on the hills that surround the city of Florence.”

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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