SYDNEY: Sydney’s plunging house prices are usurping a prolonged wage slump as the key worry for the central bank, with markets now showing more chance of an interest-rate cut than a hike in 2019.Prices in Australia’s biggest city have tumbled 10 percent and some economists are tipping a similar fall next year. 2 Guy Debelle said earlier this month. “Nearly all other house price falls have occurred in environments where there’s been recessions and the like.”The RBA would ideally like to see household incomes start to enjoy a strong, sustainable increase to help the property market find a bottom quicker, and for that to flow through to faster inflation. There was about a 24 percent possibility of a hike by the end of 2020. - Bloomberg

Source: The Star December 19, 2018 06:00 UTC