The Reserve Bank of Australia has decided to keep the official cash rate on hold at 4.75 per cent for the fifth consecutive month.
The decision came as no surprise to economists, many of whom believe the RBA will keep rates on hold until the end of the year.
Real Estate Institute of Australia president David Airey said given the current housing affordability crisis no change should be made to the official cash rate
in the foreseeable future.
Over the year to 2011, housing affordability decreased 4.6 per cent.
“The breathing space RBA has provided to home owners is welcome news – we need this respite to continue for the foreseeable future and need to work on measures that will see the return of first home buyers in the market.”