HONG KONG, July 9 /PRNewswire-Asia/ -- RICS expects Chinese GDP to come in at around 10.5% compared to 11.9% in the first quarter. In the real estate market, the latest data shows that property prices are already starting to slip, as lending restriction have intensified. Price fell back by 0.4% during May, which was the first monthly decline since March 2009.
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Australian home loan demand dampened by aggressive monetary policy
Home loan approvals fell in April for the seventh straight month, declining 1.8% to 47,669 from March. It confirms that the property market is cooling amid the Reserve Bank of Australia's (RBA) aggressive tightening of monetary policy, and the removal of stimulus packages for first homebuyers at the end of 2009.
Brazil's economy cools slightly on back of interest rate hikes
The volume of retail sales for April was down 3% from March is down to two main factors. Firstly, the expiry of consumer tax credits at the end of March resulted in consumers flocking to stores that month, artificially inflating the base of comparison for April numbers. Secondly, the tightening of monetary policy, with a 150bp increase in the Selic rate during the last 3 months has lead to higher borrowing costs in the economy.
Riksbank turns nervous about house prices
The Swedish central bank, the Riksbank, has become apprehensive about the recent pace of house price growth. Indeed, this month's Monetary Policy Report included a section entitled "Effects of a fall in house prices", which simulates the effects on the economy of a 20% fall in prices.
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