It’s good news for mortgage holders today – the Reserve Bank has opted to keep rates on hold at 4.75 per cent for another month.
The move comes on the back of recent comments by the Governor of the Reserve Bank that consumers had become cautious and were spending less and saving more.
“Whether we were going to get a rate rise was a bit touch and go this month,” says Domain.com.au property expert Carolyn Boyd. “On one hand inflation came in higher than expected last week, but on the other there’s still plenty of uncertainty in the global economy and locally, retailers are complaining of very tough conditions.”
Looking over the next year, it is difficult to tell where rates are headed with economists divided about whether they will head up, or down, or remain stable.
But Boyd says for mortgage holders, it’s always safer to err on the side of caution and assume that rates could go up. “With that thinking in place, it’s a good idea to pay a bit extra off your mortgage if you can,” she says.
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.