RBA: Christmas rate rise is unlikely

Borrowers have been offered some good news on interest rates after the Reserve Bank (RBA) indicated that the official cash rate will likely remain unchanged for the rest of the year.

RBA governor Glenn Stevens told the House of Representatives Standing Committee on Economics today (November 26th) that the monetary policy setting for the near term is currently at "about the right level".

"At the moment most commentators and market pricing do not anticipate any sort of near term change by us for quite some time and I think that's probably a reasonable position for them to have based on the information we have now," he added.

Mr Stevens also commented that market forecasts of a rate hike in February or March next year were more realistic.

The news of a potential Christmas rates reprieve comes after a national survey by Loan Market found that 62 per cent of borrowers would be reassessing their spending plans for the festive season due to recent interest rate hikes.

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