RBA rate decision 'a line-ball call'

Although experts had predicted that the Reserve Bank of Australia (RBA) would cut interest rates by as much as 50 basis points, calling it was a line-ball call, new.com.au reports.

Experts had originally placed their money on interest rates holding at 3.25 per cent, but as expectations grew that the country was moving headlong into recession, analysts were banking on an interest rate cut of between 25 and 50 basis points.

However, Macquarie Group’s chief economist Lewis South reckoned that whether the RBA decided to cut or not, it wouldn’t change its long-term plans to lower interest rates further in the coming months.

As such, those who are looking to compare home loans to find a new low-interest home loan may be encouraged to wait a little while longer to get the most out of their money.

On the flipside, the decision to hold interest rates may be welcomed by those looking to compare savings accounts as the decision may mean that savings interest rates don’t come down any further.ADNFCR-1761-ID-19055184-ADNFCR