The Reserve Bank has kept interest rates on hold today.
The move was expected given there has been little change in the global outlook and in Australia’s own economy since the Reserve Bank met last month.
Rates will remain at 4.25 per cent for the next month. Some experts have, however, predicted a rate cut could come later in the year.
“Many economists are betting on a May rate cut unless we see an improvement in the economy,” says Domain property expert Carolyn Boyd. “However, the Reserve Bank has so far indicated it is reasonably comfortable with where rates are.”
The move follows back-to-back rate cuts in November and December last year, and a decision to keep rates on hold in February and March.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Further details on what the decision to keep interest rates at 4.25 per cent means to you and the Australian property market will be outlined in this week’s Domain Property Newsletter.