RBA leaves official cash rate on hold

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Hopes of a rate cut will have to wait another month as the Reserve Bank of Australia (RBA) holds the cash rate for the fifth consecutive meeting.

The official cash rate will remain at 4.35 per cent.

Graham Cooke, head of consumer research at Finder, said the decision might feel like a punch in the gut for homeowners holding out for a rate cut.

“With inflation showing little signs of rapid decline, hopes of a rate cut to ease the pressure on household budgets seem further away,” he said.

“Households will be feeling the pinch for a while longer, probably into 2025.

“Rising costs are relentless, eating away at savings and squeezing wallets, causing genuine financial pain for many.”

Some have predicted the RBA will increase rates before the end of the year, ahead of potential cuts in 2025.

Peter Boehm from Pathfinder Consulting said today’s RBA decision was not a surprise.

“There is no justification to reduce rates based on current economic data. In fact, it’s quite the opposite,” he said.

“The pendulum is swinging towards an increase because of sticky inflation and a government fiscal policy which is likely to put upward pressures on inflation.

“Plus, I doubt there is a single Australia right now who is not suffering from sustained and ongoing price increases in such areas as utility/energy, health, food and just general living costs.”

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