The RBA puts down its scissors
For the first time in six months, the Reserve Bank of Australia (RBA) has decided not to cut interest rates, defying predictions and denying home loan customers and first-home buyers a rare spot of good news.
The fact that news.com.au sees the RBA’s decision to leave interest rates unchanged at 3.25 per cent as a sign of the strength of Australia’s economy may well come as little comfort to those variable rate home loan customers who had been hoping for further relief on their mortgage repayments.
And for those first-home buyers looking to compare home loans in the hope of a cheaper deal, it is unlikely that major lenders will push their interest rates any lower, as they have done following previous Reserve Bank cuts.
In a statement accompanying the results, RBA governor Glenn Stevens said that the successive interest rate cuts seen since September 2008 seem to have done enough to help the country dodge the bullet of recession.
"Mortgage rates are at very low levels … On the basis of currently available information, the Australian economy has not experienced the sort of large contraction seen elsewhere," he insisted.