RBA 'to keep rates unchanged'

It looks like the Reserve Bank of Australia’s (RBA’s) interest rate cutting bonanza may be over, with experts predicting that the Bank will keep the cash rate at 3.25 per cent when it meets in May.

Goldman Sachs senior economist Tony Meer has told the AAP that the RBA will likely stay away from the base rate for at least a few months as it draws hope from signs of financial recovery.

For the average Aussie on a variable home loan, such a strategy may mean an end to the monthly repayment cuts they may have become used to since September, when the RBA began its interest rate cut crusade.

Meanwhile, those looking to compare savings account may breathe a sigh of relief as the RBA’s decision to keep rates steady may mean that their savings returns don’t wither any further.

The Sydney Morning Herald has warned that it is more important than ever for people to compare savings accounts, as the consecutive RBA rate cuts have made the best deals a lot harder to find.

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