Mortgage holders sit tight on record low rate

As expected, the Reserve Bank has kept the official interest rate on hold at a record low 1.5 per cent, for the 13th-straight month.

The RBA reiterated its concern that an appreciating Australian dollar could slow economic growth and a higher exchange rate is weighing on the outlook for economic output and employment.

The Australian dollar dropped slightly, to 79.5 US cents, in the minutes following the RBA’s announcement.


“The backdrop of a strengthening global economy is helping to lower unemployment,” Martin Lakos from Macquarie Wealth Management explained.

“The Australian economy, rising commodity prices and exports, along with an improving contribution from the services sector is seeing growth improving into 2018,” Mr Lakos added.