Economists are tipping a fourth consecutive interest rate rise next month, despite a large drop in housing finance commitments.
The latest ABS figures on housing finance commitments revealed a 5.6 percent fall in lending November, seasonally adjusted, to 59,516.
ICAP economist Adam Carr said the fall was the result of first home buyers dropping out of the property market, and that a February rate rise by the Reserve Bank was still likely.
‘I don’t think the RBA is going to be worried about this number, not at all. I certainly don’t think it will rule out a rate hike in February,” he said.
Leading economist Helen Kevans from JP Morgan echoed these sentiments, claiming that the fall in housing finance commitments was not a big enough drop to prevent another rate rise.