The Reserve Bank of Australia has decided to keep the official cash rate on hold at 4.75 per cent for the sixth consecutive month.
Despite last week’s inflated CPI results, the RBA’s governor Glenn Stevens said it was prudent to keep rates on hold a little longer.
LJ Hooker Finance general manager Peter Bromley agreed with the RBA and said many borrowers still had not felt the full impact of the November rate hike.
“Every time the RBA raises rates, it can months for borrowers to feel the full and true impact,” Mr Bromley told Real Estate Business.
“I expect the Reserve Bank to leave rates on hold for at least another three months, at which time they will review the impact low unemployment is having on the economy.”