Interest rates: time to fix?
However, the Sydney Morning Herald’s economics editor Ross Gittins has assured homeowners and first home buyers that more interest rate cuts are on the way.
In the sixth months since then, the RBA has taken a whopping 400 basis points off the base interest rate, with banks rushing to bring out a bevy of new low-interest home loans after each cut was made.
Explaining the Reserve Bank’s strategy, Gittins insisted: "We’re sitting back. We’re about where we think we need to be for the moment so we’re sitting back and we’re seeing what happens."
The decision to hold off this month may well make next month’s decision from the RBA even more eagerly anticipated.