Rate on hold: Promising news for spring

Interest rates remained on hold again today, August 6, following the Reserve Bank of Australia (RBA) meeting.

It’s been a volatile month for rate forecasts, only a month ago the market was forecasting a rate rise today. However, with reasonable inflation data coming out last week, it was expected by most economists and the market that the RBA would keep the status quo.

This is good news for mortgage holders and the real estate market.

The talk of another rate rise was holding buyers back and curbing their optimism. Hopefully this can be cast aside now and the market have some confidence that the next rate movement is down. This could be in late 2024 and/or early 2025.

Other overseas central banks have already began cutting rates and it looks like New Zealand and United States might be doing the same as early as next month (September).