Interest rates on hold for now

By |
The RBA has decided to keep the official cash rate at 4.75% for the sixth month in a row.

The decision comes as little surprise to observers who predicted that a sharp 1.2% fall in GDP during the March quarter would influence the RBA’s decision, and RBA governor Glenn Stevens admitted as much in his official interest rate decision statement.

“The floods and cyclones over the summer have reduced output in some key sectors. As a result there was a sharp fall in real GDP in the March quarter, despite a solid increase in aggregate demand,” he said.

He added that “close to target” inflation levels over the next 12 months were likely, raising hopes that rises will be off the agenda in the near-term, but economists are still tipping an August rate hike.

In the meantime, the decision has drawn cautious praise from property industry insiders, with HIA senior economist Andrew Harvey calling it “a rare bit of good news amidst mounting pressure on home affordability and fast-declining activity in the residential building sector."

“It just gives a touch of relief to those Australians paying off mortgages and also to those trying to enter the housing market, amidst the less predictable environment households face in the post-GFC era,” he added.

The RBA’s next interest rate decision will be made on 5th July.

When will the next rise hit us? Is it time to fix? Have your say at

Do you have more than $200k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : collingwood , scarborough , westmead , coorparoo , homebush

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here