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RBA rate rises on hold....finally

Many home loan customers have finally breathed a sigh of relief after the Reserve Bank announced a pause in cash rate rises at it's monthly meeting today.


In what has been referred to as a 'line ball decision', the RBA has left the cash rate unchanged at 3.60%. It is the first time this year that the cash rate has not been lifted following an RBA meeting and brings an end (albeit for now) to the consecutive rate rises Australian home loan customers have endured since May last year.


In its statement following today's meeting, the RBA wants more time to see the impact of the rate rises to date, on inflation, home loan customers and the wider economy.


“The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty,” RBA Chairman Philip Lowe said.


It will also give more time for the potentially 'delayed impact' on a large number of home loan customers who are yet to experience the significant increase in variable rates.. With many Australian's to exit their fixed rates over the next six months, it will only be then that the true impact of the 11 rate rises we have had up until this month. to date will become apparent.


The question now becomes how will both the banks together with buyers and sellers react to today's news.


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