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.