- Reserve Bank leaves interest rates unchanged
The Reserve Bank has dealt another blow to millions of Australians with mortgages by failing to cut interest rates.
The cash rate remained unchanged at a 12-year high of 4.35 percent, even as the US, UK, Canada, European Union and New Zealand have cut interest rates this year.
Reserve Bank Governor Michele Bullock gave a clear message to borrowers on Tuesday, hoping for relief soon.
‘Headline inflation will continue to decline for the time being, but underlying inflation is more an indication of inflation dynamics and remains too high,’ she said.
Underlying inflation, excluding volatile price movements, was 3.9 per cent in the period to June, well above the RBA’s target of 2 to 3 per cent.
The futures market estimated the chance of a rate cut on Tuesday at just 10 percent.
The Reserve Bank has dealt another blow to millions of Australians with mortgages by failing to cut interest rates (pictured is Queen Street Mall in Brisbane)
Reserve Bank Governor Michele Bullock delivered a blunt message to borrowers on Tuesday, hoping for relief soon