At its second meeting for 2024, the Reserve Bank of Australia (RBA) decided to keep the cash rate on hold at a 12-year high of 4.35 per cent.
Read today’s official statement on the RBA’s website. The next RBA cash rate decision will be announced on 7 May.
Homeowners who are grappling with the cost-of-living crisis will no doubt welcome today’s decision to leave the cash rate on hold.
With the economy cooling and inflation slowing, some economists are optimistic that the next move by the RBA will likely be a rate cut, potentially in September.
Meanwhile, a Real Estate Institute of Australia (REIA) report found the average household is now spending just under 48 per cent of their income on mortgage repayments.
REIA President Leanne Pilkington said that given the current cash rate, it was “no surprise” affordability was at its lowest on record since the REIA’s first ever report.
“Housing affordability in NSW, Victoria, South Australia, Tasmania and the ACT is at its lowest point in 20 years,” she said.
“Queensland emerged as the biggest loser in the affordability stakes declining in housing affordability by 2.8 per cent in the quarter.
“Only with rate rise relief will we see changes to this outlook.”
Author: Reserve Bank of Australia
Source: rba.gov.au