Hopes of end-of-year rates relief have been dashed as the Reserve Bank of Australia stays on hold and the board warns underlying inflation remains “too high”.<\/p>\n
Borrowers hoping for repayment cheer to ring in the new year will be left disappointed as the Reserve Bank of Australia keeps its key interest rate unchanged.<\/p>\n
The widely expected call marks more than twelve months at 4.35 per cent, with the central bank on hold since it last lifted the cash rate 25 basis points in November 2023.<\/p>\n
In the post-meeting statement, the board said underlying inflation remains “too high”.<\/p>\n
“The November statement of monetary policy forecasts suggest that it will be some time yet before inflation is sustainably in the target range and approaching the midpoint,” the board said in the statement.<\/p>\n
“Recent data on inflation and economic conditions are still consistent with these forecasts, and the board is gaining some confidence that inflation is moving sustainably towards target.”<\/p>\n
Financially-stretched mortgage-holders have been keenly awaiting interest rate cuts though the majority of economists are now tipping May for the central bank to start lowering borrowing costs.<\/p>\n
February still remains a possibility and is the forecast pick of Commonwealth Bank, with the remaining big four banks pencilling in May.<\/p>\n
Australia’s annual headline inflation rate is back within the RBA’s two-three per cent target range but the focus has been on still-elevated underlying price pressures and the tight labour market.<\/p>\n
By\u00a0Poppy Johnston<\/b>\u00a0in Canberra<\/p>\n","protected":false},"excerpt":{"rendered":"
Hopes of end-of-year rates relief have been dashed as the Reserve Bank of Australia stays on hold and the board warns underlying inflation remains “too high”. Borrowers hoping for repayment cheer to ring in the new year will be left disappointed as the Reserve Bank of Australia keeps its key interest rate unchanged. The widely […]<\/p>\n