Australian Property News

Cash rate remains unchanged

Posted on Tuesday, October 05 2010 at 3:00 PM

The Board of the Reserve Bank of Australia (RBA) has decided to leave the cash rate unchanged at 4.5 per cent.

Governor Glenn Stevens said the current stance of monetary policy was delivering interest rates to borrowers close to the average of the past decade.

The RBA regarded this as appropriate for the time being. “If economic conditions evolve as the board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target,” Governor Stevens said.

Editor of Australian Property Investor magazine Eynas Brodie said this was welcome news for mortgage holders.

“The RBA’s decision is good news for homeowners and investors but higher interest rates further down the track are inevitable so now is the time to look at your loan structures and your buffer to ensure you can cover future repayments,” she said.