The Reserve Bank of Australia (RBA) has kept interest rates on hold at its June meeting on Tuesday afternoon. It’s not quite cause for celebration among homeowners, though, as struggling borrowers now face having to hold on for months longer before the rates are slashed to a more manageable level.
The RBA has paused interest rates all year at 4.35 per cent amid signs of inflation slowing down as the economy weakens. Not since November last year has the cash rate changed. Several experts had predicted that the cash rate might begin to get cut as early as this month at the June decision. But in the past few months, many have revised down their estimates, pushing back the expected date of mortgage relief. As recently as April, financial markets were betting on the RBA cutting the cash rate at the June meeting by 20 basis points, to sit at 4.15 per cent. However, ahead of today’s announcement all were expecting rates to remain unchanged.
Australia’s big four banks have been forecasting that the rates will begin to be cut from November this year.
