The Reserve Bank has kept interest rates on hold today.
The move was expected after the Reserve Bank governor, Glenn Stevens, recently indicated he is comfortable with lending rates at the moment.
Rates will remain at 4.25 per cent.
“We may well see further cuts this year but the Reserve Bank has decided that this month is not the time to deliver them,” says Domain property expert Carolyn Boyd. The move follows back-to-back rate cuts in November and December last year, and a decision to keep rates on hold in February.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
After many major lenders lifted their rates out of cycle last month, all eyes will be on the financial institutions to see if they plan to deliver a second round of raisings, says Boyd.
The ANZ Bank will announce its move this Friday, the second Friday of the month. In February, lenders waited for the ANZ Bank to announce its decision before following suit. “Time will only tell if the same pattern is to be repeated,” says Boyd.
Further details on what the decision to keep interest rates at 4.25 per cent means to you and the Australian property market will be outlined in this week’s Domain Property Newsletter. If you are not already subscribed to our FREE weekly newsletter