Interest rates will not rise this year, the chief economist of St George bank has told brokers, but another cut could be on the cards.
Speaking at Loan Market’s bi-annual economic forum, run in partnership with Ray White, St George chief economist, Hans Kunnen, discussed the year ahead and the factors that will drive NSW in terms of economic activity.
“Interest rates will not go up this year,” Kunnen said. “But if inflation stays low, it’s likely that another cut will come.”
Looking at population growth and construction in NSW, Kunnen discussed the undersupply of property, foreign investment and the risk of oversupply in the future. However, the economist closed by reinforcing NSW will grow, jobs will be created, and the real estate and mortgage industries will continue.
“If you are good at what you do, you will continue to do business,” he said.
NSW state director of Loan Market, Michael Karpathakis, said this should encourage brokers in a time of uncertainty – a changing property market, regulatory scrutiny, and nervousness around foreign borrowers and the economy.
“There is a lot of good stuff happening in the NSW economy. Hans showed us there’s growth in jobs, we’re spending on infrastructure, we’re re-zoning land and Loan Market and Ray White are in two thriving industries.”
Ray White CEO, Stephen Nell, added that the job of both Ray White and Loan Market is to make sure their franchisees continue to do business.
“When times are good no-one can imagine it turning bad, and vice versa, in bad times, it’s hard to believe it will come good again. The ambition and responsibility for Ray White and Loan Market is to enable our members to profit in good times and continue to thrive in bad times,” he said.