BORROWERS will have to wait at least another month for lower repayments after the RBA kept rates on hold today.
It is the second consecutive month the central bank has taken a cautious approach to safeguarding the economy leaving the official cash rate at 4.25 per cent – among the highest of the developed nations.
And despite the decision not to lift rates, borrowers could be slapped with even more pain, with lenders refusing to move in lockstep with the RBA.
Last month, 45 financial institutions ignored the RBA’s decision to leave rates on hold instead taking it as a green light to increase borrowing costs.
Among them, all four major banks – Westpac, Commonwealth, NAB and ANZ – opted to raise their standard variable rates by between 6 and 10 basis points, citing higher funding costs.
Today’s RBA decision met the expectations of all 24 economists in a Bloomberg News survey predicting no change.