A mortgage broker network has slammed the Reserve Bank for what it calls a complete lack of common sense after the bank decided to keep official interest rates on hold.

John Kolenda, managing director of 1300HomeLoan, an independent network of more than 200 brokers in Australia, said that maintaining the cash rate at 3.0% would leave the domestic economy in a holding pattern.

“The domestic economy is going nowhere at the moment and the RBA board have failed most consumers and other struggling sectors of the economy by sitting on their hands,” he said.

“The RBA haven’t got much right in recent years and this decision at their first meeting of 2013 to leave rates on hold is yet another blunder.

“The domestic economy is a real mixed bag at the moment and if things don’t get moving soon the RBA will have no choice but to take affirmative action in the months ahead.

“They still have plenty of ammunition as our official interest rate remains well above most of our trading partners – hence the continuing strong Australian dollar which is hurting exporters and the tourist industry.”

Kolenda said the current cash rate could be lowered by as much as 50 basis points in the short term to boost consumer activity and it was hoped this could be passed on in full by lenders.

“The cost of funding issue that has been cited by lenders as a reason not to pass on the RBA cuts in full in the past is less justified at the moment,” he said.