The Reserve Bank has kept rates on hold after its first meeting of the 2017 calendar year yesterday.
Reserve Bank Governor Philip Lowe citing a forecasted economic growth picking up inflation to more than 2%, up from the 1.8% from the September quarter.
The Governor also sought comfort in increased resource exports and full-time employment figures improving in the later stages of 2016.
Sydney and Melbourne housing markets are still of concern given double digit growth rates however Governor Lowe said conditions varied around the country.
“In some markets, conditions have strengthened further and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for a couple of decades,” he said.
The next Reserve Bank meeting is scheduled for March