Interest Rates On Hold for Now!

The Reserve Bank of Australia have decided to give mortgage holders a reprive this month by keeping the cash rate at 4.75%.

This is the sixth straight month the RBA have kept interest artes on hold but they have been keen to raise interest rates at some stage in the future. Softer housing prices, the floods and housing pressures were the main reasons for not increasing rates.

Most economists predicted that rates would remain steady for this month; however, they are predicting a rate rise in August and perhaps another before Christmas.  Future business investment is predicted to come into the country and the RBA is on the lookout for higher growth and inflation later in year which may lead to an increase in interest rates.

For now it is a waiting game and we will have to wait latter in the year to see if mortgage rates are going

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