In March the Reserve Bank of Australia has left interest rates on hold for a third consecutive meeting, but when it comes to the outlook, it’s “not ruling anything in or out”.

Interest rates are to stay the same with no relief on the horizon for struggling mortgage holders, the Reserve Bank of Australia (RBA) has announced for a third consecutive time.

The rate has been held at 4.35 per cent since November 2023 with many homeowners desperate for a drop, but the RBA’s governor Michele Bullock admitted they were “not ruling anything in or out”.

 

Financial markets are continuing to anticipate the first interest rate cut will come from the RBA in September, but the RBA has refused to say if interest rates could rise again.

The prospect of another interest rate rise looms as the inflation rate, which currents sits at 4.1 per cent, remains well above the RBA’s target range of two to three per cent.

Announcing the decision to keep interest rates on hold RBA governor Ms Bullock warned Australians that “while there are encouraging signs that inflation is moderating, the economic outlook remains uncertain”.

The RBA maintains its laser-like focus on inflation, as the board said “returning inflation to target within a reasonable timeframe” remains its “highest priority”.

“While recent data indicate that inflation is easing, it remains high,” the RBA said, announcing today’s decision.

“The Board expects that it will be some time yet before inflation is sustainably in the target range.”

The last consumer price index data, for the three months to December 2023, showed inflation had fallen by 0.6 per cent since the end of September.

The next set of inflation data, for the first three months of 2024, will be released in April, ahead of the RBA’s next board meeting on May 7.

What can you do whilst you’re waiting for rates to drop?

Very simple. Take 5 minutes to phone a lending specialist. Having your home loan reviewed can help you ensure you’re not paying too much.

Some options we can help you explore include refinancing (which could mean increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a cash buffer in an offset account.

If you’re keen to switch and save, get in touch with one of our local specialists today. Understanding your options can start with a simple phone, web, or in person discussion.

Refinance or buying. We make home loans simple.

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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.