CHAN & NAYLOR WELCOMES RATES DECISION

The decision by the Reserve Bank to keep interest rates on hold has been welcomed by accountancyfirm Chan&Naylor.

“Feedback from our clients indicates that the economy is nowhere near overheating. In our view another interest rate hike at this point could not be justified,” said Sal Carrero, Chief Executive, Chan & Naylor.

“In an election period there is already considerable uncertainty and business decision-making is often put on hold. The last thing the economy needs in an election environment is an increase rate increase.”

Chan & Naylor, which represents 8,000property investor clients, said that there were already signs that the housing market was slowing.

“There remains considerable caution among our clients when it comes to further investment. House price falls and softening auction clearance rates suggest that previous increases to interest rates are still to take full effect.

“There remains no evidence that inflation is a threat and the global economic environment means that the wait and see approach is the only one which should be contemplated,” Mr Carrero concluded.

ENDS.