RBA’s continued approach to stability

The Reserve Bank Of Australia (RBA) has continued to hold the cash rate at 4.35%.

The RBA board released a statement saying “returning inflation to target within a reasonable timeframe remains the Board’s highest priority. This is consistent with the RBA’s mandate for price stability and full employment."

Despite higher-than-anticipated inflation data sparking concerns about elevated prices, borrowers anticipating a decrease in interest rates may need to prolong their wait. With the cost of living mounting to "extreme levels," the trajectory of interest rates might incline towards stabilization.

Maintaining the current rate offers a degree of reassurance to borrowers, especially those with variable rate mortgages, by ensuring their payments remain consistent for the time being. This steadiness is crucial and has the potential to enhance consumer confidence, despite ongoing challenges posed by persistent inflation in the economic landscape.

As the Reserve Bank of Australia prepares for its next upcoming meeting, there's hope for home borrowers that the rates wont continue to rise. For more information please visit the RBA’s statement here.