Although the decision was widely expected, there has been plenty of speculation recently about both a rate rise, and a rate cut, leaving consumers confused about which way rates were headed this month.
“It’s a good news day for households with a mortgage,” says Domain.com.au expert Carolyn Boyd. “Although retail sales figures had a bit of a jump last week there are plenty of factors to keep the Reserve Bank on the sidelines, including a slow housing market and continued global uncertainty.”
While there has been talk of a rate cut, fuelled by many lenders cutting their fixed interest rates for mortgages, a drop is no certainty. The next few months will really keep everyone guessing as to whether we are in for a cut or an increase – or more of the same.
Rates have been on hold since the Reserve Bank hit borrowers with a surprise increase on Melbourne Cup day last November.
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.
Further details on what the decision to keep interest rates at 4.75 per cent means to you and the Australian property market will be outlined in this week’s Domain.com.au Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.