The Reserve Bank of Australia has decided to keep interest rates on hold at the record low of 1.50 per cent at its first meeting for 2017.

REINSW President John Cunningham said the decision came at no surprise.

“Housing affordability will be hotly debated in 2017,” Mr Cunningham said. “We expect more stock to come to market this year and we hope that that will cause the market to become more settled.

“An emphasis will again be placed on first homebuyers and there will be much debate this year on ways to improve their plight. We hope that the government consults the industry in order to make the right decisions.

“A review of stamp duty is urgently required and should focus on first homebuyers and older Australians,” Mr Cunningham said.

In 2016 the RBA cut interest rates twice, in August and May, however the banks made the decision to independently increase interest rates.

The RBA will next meet on Tuesday, 7 March 2017.