Another interest rate reprieve from the Reserve Bank of Australia (RBA) has
given home owners facing cost of living increases some much needed relief, says
leading mortgage broker Loan Market.

Loan Market Chief Operating Officer Dean Rushton said the RBA maintaining the
cash rate at 4.75 per cent for the seventh consecutive month, the longest hold
since 2007, was the correct call in the current economic climate.

“Given the struggles the retail sectors are having a rate rise could have
been the final straw for many,”  Mr Rushton said. “Recent employment numbers
have added to the conflicting economic data and more time is needed to get an
accurate read on the state of the economy.”

“We’re already seeing consumer sentiment wane with just the threat of an
interest hike. The housing finance numbers for April are due out tomorrow and
will clearly show that consumers are neither borrowing or spending of their own
accord. They don’t need any assistance from the Reserve Bank in that regard”