Another interest rate reprieve from the Reserve Bank of Australia (RBA) has given home owners facing cost of living increases some much needed relief, says leading mortgage broker Loan Market.

Loan Market Chief Operating Officer Dean Rushton said the RBA maintaining the cash rate at 4.75 per cent for the seventh consecutive month, the longest hold since 2007, was the correct call in the current economic climate.

Given the struggles the retail sectors are having a rate rise could have been the final straw for many, Mr Rushton said. Recent employment numbers have added to the conflicting economic data and more time is needed to get an accurate read on the state of the economy.

We’re already seeing consumer sentiment wane with just the threat of an interest hike. The housing finance numbers for April are due out tomorrow and will clearly show that consumers are neither borrowing or spending of their own accord. They don’t need any assistance from the Reserve Bank in that regard

Loan Market