Michele Bullock and the Reserve Bank board left the official cash rate at 4.1 per cent for the fourth month in a row.
Home buyers’ reprieve from rising interest rates continues, with the Reserve Bank keeping the official cash rate steady for the fourth month in a row amid more signs the economy is slowing.
“Inflation in Australia has passed its peak but is still too high and will remain so for some time yet,” she said. “And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later, involving even higher interest rates and a larger rise in unemployment.”
“The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome.” The bureau’s head of finance statistics, Mish Tan, said the number of new loans to owner-occupiers had returned to pre-COVID levels.But she noted there continued to be strong evidence of people re-financing their loans in response to the rapid increase in mortgage interest rates.
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