No change for interest rates today with the Reserve Bank deciding to keep the rate at 7.25 percent. Many economists predicted this outcome, looking instead to November for a possible rate cut.
Signs of a slowing economy have prompted the predictions, which would see the first cut since December 2001.
While the rates stay steady today, Reserve Bank Governor Glenn Stevens issued a statement hinting at a rate cut in the near future.
"Weighing up the available domestic and international information, the board judged that the cash rate should remain unchanged this month. Nonetheless, with demand slowing, the board’s view is that scope to move towards a less restrictive stance of monetary policy in the period ahead is increasing," he said.
What good future interest rate cuts will do to impact on home loan interest rates is still doubtfull. Treasurer Wayne Swan's comments last week urging banks to follow the RBA, seem to have fallen on deaf ears with banks instead hiking home loan rates, prompting many to believe that there will be no relief for home owners until 2009.
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