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While there have been several factors impacting the global economies, the Australian economy is also being impacted by the fall in the housing prices. Recently, the sentiments of market players were helped by the news that the trade war between the US and China is under the temporary halt. Earlier, there were expectations that the escalation in the US and China trade battle could significantly impact the Australian economy. Another event which the Australian investors were keenly watching was related to the decision of the Reserve Bank of Australia or RBA. As was broadly anticipated by the market players, the central bank of Australia has kept the cash rate unchanged. As per the media release, in regard to most of the advanced economies, the rates of unemployment have been at the lower levels. However, global trade has been witnessing some of the negative impacts because of the worries related to the trade. If the trade battle comes to a permanent end, the investorsâ sentiments would be witnessing positive momentum which would significantly help the broader equity markets.  Â
Not so long ago, there has been a release on the Reserve bank of Australiaâs site which contained information related to the housing prices. There have been movements with respect to the housing markets as well as housing credit. As per the press release, a downward momentum has been witnessed in the housing prices and there has been declines in the Sydney as well as Melbourne. However, the release related to the housing prices stated that because of the tighter conditions in the supply of the credit, the housing demand has been suffered. The press release also stated that the steps which have been adopted by the regulatory bodies in order to tackle the risks which are linked to the housing lending have actually helped in tackling the risks, but these steps have also negatively impacted the investor credit. As a result, the housing demand has been impacted significantly.
However, as per the release in which there were points with respect to the monetary policy decision, there has been some sort of uncertainty with respect to the anticipations regarding household consumption. The growth with respect to the household income has been in the lower levels, some of the asset prices have seen a fall as well as the levels of debt have been increased. The release related to the monetary policy decision also contained information related to the labour markets. As per the release, the labour market is expected to witness favourable momentum and, presently, the unemployment rate stands at 5%. The release also stated that a fall in the unemployment rate is also expected moving forward. The document also stated that some of the borrowers have been witnessing tighter credit conditions. Because of the fluctuations in the housing market, the housing investors have witnessed slower credit demand. The decision of the central bank of Australia to keep the rates unchanged is expected to be beneficial for the economy of Australia.
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