The Reserve Bank is leaving interest rates unchanged in what would be a big win for millions of homeowners in one of Philip Lowe’s final acts as governor
The Reserve Bank kept interest rates at an 11-year high of 4.1 percent for the third straight month.
Philip Lowe, who chaired his final meeting as RBA governor, left interest rates unchanged on Tuesday, bringing relief to millions of home borrowers grappling with a cost-of-living crisis.
“Inflation in Australia has peaked,” he said.
dr Lowe, whose seven-year term ends Sept. 17, had led the most aggressive pace of monetary tightening since 1989, with 12 rate hikes since May 2022.
The Reserve Bank kept interest rates at an 11-year high of 4.1 percent for the third straight month. Philip Lowe (left with deputy Michele Bullock), chairing his last meeting as RBA governor, left interest rates unchanged
In his latest monthly statement, he defended his legacy.
“The higher interest rates are creating and will continue to create a more sustainable balance between supply and demand in the economy,” he said.
“In light of this fact and the uncertainty surrounding the economic outlook, the Board has decided to keep interest rates stable this month as well.”
Australian home loans have seen their monthly repayments increase by 63 per cent in just over a year.
As recently as May 2022, a borrower with an average mortgage of $600,000 owed $2,306 a month when variable rates were still preceded by a “2”.
The same borrower would now be paying $3,769 per month at a variable rate of 6.44 percent.