In a sign that the Reserve Bank thinks the economy is bubbling along nicely, it opted to keep rates on hold at 4.5 per cent.
Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were a year ago.
Mortgage holders on variable interest rates are being charged about 7.4 per cent by their lenders.
With the drawn out Federal election, the property market has remained steady in recent weeks and a slower than usual start to the Spring selling season is predicted.