Good news for Australian mortgage holders with the Australian Reserve Bank (RBA) officially deciding to keep interest rates on hold for another month.
Although there has been talk of rate rises in recent weeks, the RBA has adopted a wait-and-see approach for another month and left official rates at 4.75 per cent. According to the RBA, “The global economy is continuing its expansion, led by very strong growth in the Asian region. Commodity prices have risen further over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative.” For the official RBA statement, click here.
Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were a year ago.
The next interest announcement by the RBA will be made on April 5th.