Reserve Bank signals rates to stay on hold

The Reserve Bank of Australia (RBA) is providing some stability to Australian consumers battling cost of living increases and an uncertain economic climate by leaving official interest rates alone, says leading mortgage broker Livingstone Financial.

Livingstone Financial broker, Daniel Agung, said the central bank now looked likely to keep the cash rate at 4.75 per cent for the entire year.

Mr Agung said the interest rate outlook was much clearer now than a few months ago when pundits were predicting movement in both directions.

“While there is considerable debate regarding when it’s going to happen, there is a growing sentiment toward the next rate decision being downwards,” he said.

Mr Agung cited the deteriorating global economic environment as well as a sluggish domestic economy outside of the mining boom as the catalysts behind an anticipated rate reduction.

“The rate reprieve should bolster falling consumer confidence in the lead up to Christmas and build a more positive outlook for Australians dealing with cost of living pressures and the volatile economic climate,” he said.

“Lenders are launching fixed rate specials almost daily with markets aggressively pricing for future rate cuts,” he said.