The long-awaited inflation figures released
this morning have shown a higher-than expected jump for the March quarter,
heightening expectations of an interest rate rise later this year.
Reserve Bank of Australia (RBA)
has made the right decision to keep official interest rates on hold, says
leading mortgage broker Loan Market.
Loan Market Chief Operating Officer Dean Rushton said mortgage holders would
be relieved the RBA board had maintained the cash rate at 4.75 per cent.
“Consumer confidence remains soft and many elements of the economy, including
the retail sector and consumer lending are extremely soft,” Mr Rushton said.
“We’re happy to see rates left on hold for the foreseeable future and can see
no reason why they should go up.
“There were four rate rises during 2010 and they are still having an impact
on mortgage holders who are coping with the increased cost of utilities, petrol
“Any rate increase in the near future would only result in a serious setback
to consumer sentiment,” Mr Rushton said.