RBA stands firms on interest rates

The Reserve Bank of Australia (RBA) has decided to keep interest rates at three per cent, acting in line with many experts’ expectations.

In a statement earlier today (July 7th), the RBA’s governor Glenn Stevens said that the availability of low-interest home loans had continued to improve, although business lending was said to have remained tight since the last monthly decision.

Macquarie Bank interest rate strategist Rory Robertson told news.com.au that the Bank had little choice to keep rates on hold this month, although there is still hope that there will be another cut before the year is out.

"A further rate cut would not have been a serious option at this meeting, with policymakers continuing to judge the case for further easing to be unconvincing," said Robertson.

Looking forward, Stevens said that there is likely to be strong interest in new home loans later in the year as people continue to take advantage of historically low rates.

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