CENTURY 21 agents have welcomed this week's decision made by the Reserve Bank of Australia (RBA) to lower the official cash rate by fifty basis points to 3.75 per cent and expects the move to encourage growth in Australia's property market.
"Should the banks pass on the rate cut, this decision should be an excellent shot in the arm for a relatively quiet property market and the economy at large," said Geoffrey Jordan, co-owner of Century 21 Marsden Realty.
"I believe the decision is the right one when considering the state of the Australian economy and could potentially be the first of a number of cuts.
The RBA's decision comes after the release of lower than expected inflation figures, ongoing economic turbulence in Europe and disappointing Housing Industry Association research showing that new home sales fell to their lowest levels in over a decade in March, 2012.
"With a relatively gloomy global economic outlook in the short term, now more than ever the RBA needs to encourage investment and consumer confidence to spur economic activity," Mr Jordan said.
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