Finally....! RBA leaves cash rate on hold

Australian mortgage holders can now breathe a collective sigh of relief as the RBA has just announced at today's meeting that it has decided to leave the cash rate on hold.

Philip Lowe, the RBA Governor, sited the need for time to evaluate the 'impact of the increase in interest rates to date' together with the economic outlook as the main reason behind keeping the cash rate on hold at today's meeting.

In his speech released today, Philip Lowe acknowledged 'that the combination of higher interest rates and cost-of-living pressures is leading to a substantial slowing in household spending'. He acknowledged that for some families this is leading to a 'painful squeeze on their finances'. For many Australian's whose interest rates have steadily increased over the last 12 months, this was one thing that could agree on.

With the Reserve Bank keeping the cash rate on hold, it could be argued that many lenders will follow suit especially in light of the fact that they have followed the actions of the RBA point for point up to today. We all watch with baited breath.

For now however, it is one piece of good news that Australian mortgage holders could hold onto to start the new financial year.