There was no rate relief for Australians from the reserve bank and don't expect cuts anytime soon. The RBA remains concerned about rising inflation with the governor now signalling the next move on rates could be up.
00:00No relief in sight for Australian homeowners.
00:05I don't think there are interest rate cuts in the horizon for the foreseeable future.
00:10So what's the more probable outcome for next year? Interest rates going down or interest rates going up?
00:15David, probabilistic statements, you know I don't like to make those.
00:21Which means the current cash rate of 3.6% is as low as it gets.
00:26With inflation too high, but unemployment also rising, the RBA faces a tough choice.
00:33If the Reserve Bank is forced to lift interest rates next year, would that in hindsight have meant too many rate cuts for 2025?
00:42You could read it that way, but you could also read it and just, as I said, you go back six or seven months and a lot of people were saying we needed to drop interest rates quite a lot because things were very, very soft.
00:53A tough pill to swallow for homeowners like Matthew Britland.
00:57I'm feeling mortgage stress. You know, I'd like to go and see people in England, my family.
01:03I've not seen since COVID and I've not been able to do that largely, I think, because I have made the decision to buy a home.
01:11He bought his house when rates were at their highest in more than a decade and, like so many Australians, is feeling the cost of living pinch.
01:18A lot of Australians would have wanted some more rate relief, but wouldn't have expected it.
01:23This was the outcome widely anticipated by markets and by economists.
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