The Reserve Bank has kept interest rates on hold today. The decision came after deep cuts at the bank’s two previous meetings.
The official interest rate remains at 3.5 per cent.
“Given that the Reserve has already shaved 75 basis points off rates this year, it’s not really a surprise that the board has decided against a move today,” says Domain property expert Carolyn Boyd.
The move follows a 0.25 per cent cut last month, and a 0.5 per cent cut in May.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average mortgage.
Many economists have predicted the Reserve Bank may cut rates again this year – possibly as soon as its next meeting in August.