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April 2023 Interest Rates On Hold

April Interest Rates

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The RBA has offered some reprieve for borrowers and, after 11 interest rate rises in a row, kept interest rates on hold in April 2023. The cash rate remains only held at 3.60 %pa.

Mortgage Broker What If We Finance believes this is not a pause or the start of interest rate reductions, but the RBA is waiting to see if enough has been done to control inflation.

While the RBA did not raise rates at its monthly meeting, governor Philip Lowe said: “some further tightening of monetary policy may well be needed to ensure that inflation returns to target”.

April 2023 Interest Rates On Hold

April Interest rate

“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,” Dr Lowe said in a statement after the meeting.

“In assessing when and how much further interest rates need to increase, the board will pay close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.”

The RBA is waiting because the effects of the fixed-rate mortgage cliff are kicking in, and it will want to assess the economic impact. There is fear that higher interest rates will greatly impact economic activity.

As published in December 2022, What If We Finance believes interest rates are close to their peak.

Contact mortgage broker Melbourne, What If We Finance, to determine if your home loan still works for you.

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