RBA leaves interest rates on hold

Mozo

Tuesday 05 May 2009

At its monthly meeting yesterday (May 5th), the Reserve Bank of Australia (RBA) decided to hold off on any further interest rate cuts, leaving rates at three per cent.

Announcing the decision, the RBA’s governor Glenn Stevens said that there were global signs of recovery beginning to surface, but added that the situation was still very fragile.

He added: "Market and mortgage rates are at very low levels by historical standards and business loan rates are below average, reducing debt servicing burdens considerably."

For the average Aussie looking to compare home loans, the announcement will most likely mean that the banks will keep their interest rates on hold too, while a rise is not out of the question.

Figures shown by News.com.au demonstrate that since the RBA embarked on its rate-cutting bonanza in September, the gap between their cash rate and the average home loan interest rate has widened noticeably, with the major banks saying they have little room to make further cuts.

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