RBA keeps interest rates on hold again

The Reserve Bank has left interest rates on hold for the 25th month straight.

The official cash rate remains at a record low 1.5 per cent, where they’ve been since August 2016.

RBA Governor Philip Lowe highlighted low wages growth, weak household spending and low inflation as the main reasons for keeping rates on hold.


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The RBA boss also referred to easing conditions in the housing market, particularly in Sydney and Melbourne.

Economists are predicting rates will remain on hold for all of 2019, and possibly most of 2020.

But all eyes are on three of the big banks to see if they will follow Westpac’s lead in hiking up home loan rates anyway.

Westpac announced its variable home loan rates will increase by 0.14 per cent from September 19, blaming an increase in its own borrowing costs.

Commonwealth, ANZ and NAB are now weighing up whether to do the same.

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