RBA Holds Rates for Fifth Month

The Reserve Bank of Australia (RBA) has made the right decision to keep official interest rates on hold, says leading mortgage broker Loan Market.

Loan Market Chief Operating Officer Dean Rushton said mortgage holders would be relieved the RBA board had maintained the cash rate at 4.75 per cent.

Consumer confidence remains soft and many elements of the economy, including the retail sector and consumer lending are extremely soft, Mr Rushton said.

We’re happy to see rates left on hold for the foreseeable future and can see no reason why they should go up.

There were four rate rises during 2010 and they are still having an impact on mortgage holders who are coping with the increased cost of utilities, petrol and groceries.

Any rate increase in the near future would only result in a serious setback to consumer sentiment, Mr Rushton said.

Loan Market