Mortgage and housing sectors react positively to Budget

This week’s Budget may have killed off the chance of another rate cut, with industry figures cautiously optimistic about the impact it will have.

AMP Capital chief economist Shane Oliver said that this Budget was unlikely to have much impact on the Reserve Bank’s monetary policy deliberations.

“While this Budget could provide a boost to confidence, ongoing fiscal tightening will act as a mild drain on growth in the years ahead,” he said.

“Our view remains that we have probably seen the low for the cash rate but that the risks are skewed to more cuts and a rate hike is a long way off.”

Mortgage Choice chief executive John Flavell said it was too early to tell what impact the Budget will have on buyer and seller activity – although he didn’t sound concerned.

“Auction attendance and clearance rates will come into sharp focus over the coming months to demonstrate stronger indications of cons...