RBA keeps official cash rate on hold at 4.35% for eighth-straight meeting

ABC NEWS (Australia)

The Reserve Bank has kept interest rates on hold once again. The RBA governor says while core inflation is moving towards its target. The central bank still needs more convincing that it's going to stay down.

Transcript

00:00For these punters at the Melbourne Cup, a lot was riding on the Reserve Bank's interest

00:07rate decision.

00:08We've probably had like a 45% increase on our weekly mortgage repayments.

00:12It's a lot harder these days now, with everything else going up, you know, food and fuel and

00:18all the bills and everything.

00:21Clearing the inflation barrier is no easy feat.

00:23I don't even know who won.

00:25The RBA Governor is more focused on tackling underlying inflation and still can't rule

00:30out a rate rise.

00:32We do think that there are still some risks on the upside.

00:36That's why I say we can't rule anything in or out.

00:39As expected, the Reserve Bank kept the cash rate on hold at 4.35%.

00:45What this means is that rates haven't gone up since last Melbourne Cup day.

00:49We are absolutely at the back of the pack in seeing reductions in interest rates.

00:53We've seen them in the US, in the UK, in Canada, New Zealand, Europe, elsewhere, but

00:58not in Australia.

01:00While we may be a laggard when it comes to interest rate cuts, rates here are still low

01:04compared to other nations like the US and New Zealand.

01:07And given the nation's leading economists are not expecting a rate cut by Christmas,

01:11borrowers will have to wait until next year for any mortgage relief.

01:15I still think first half of next year it's likely, but we shouldn't be holding our breath

01:21for a lot of interest rate cuts in Australia.

01:24I really don't think we can expect any rate relief from the RBA until about May of next year.

01:29The Governor wouldn't be drawn into forward guidance for next year.

01:32We will try to make sure that we're tuned in enough that if things start to turn down

01:37more than expected, that we're ready to act.

01:39But we don't know.

01:40With rates staying higher for longer, Australians with home loans are being advised to seek

01:45out a better deal.

01:47There are 34 different lenders offering at least one variable rate under that 6% mark,

01:52so it is well worth looking at the refinancing numbers.

01:56So it pays to switch lenders to minimise the mortgage pain.

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