As I posted last month, "Home loan growth in Australia, which fueled house prices, remains the weakest ever (since records began in 1976). This is despite the RBA cutting rates to near historic lows. Expect our central bank to keep slashing rates throughout 2013 and beyond as they chase the market down.
And with the number of jobs advertised falling yet again, for the tenth straight monthly decline, the unemployment rate will follow."
Job ads have now fallen for the 11th straight month - despite the RBAs rate cuts which have failed to boost employment. Lower rates also failed to boost demand for new homes with new home approvals plunging again. We should expect the RBA to keep cutting rates over coming months & years as they follow the market all the way down - eventually towards 0%.
