The Reserve Bank has left interest rates on hold amid signs that growth in the economy has dramatically slowed down following 13 interest rate rises since May 2022.
The decision to keep rates on hold was widely anticipated, with few economists expecting another rate hike. However, many are predicting the RBA will start cutting interest rates in the second half of this year as inflation continues to moderate.Based on an average variable rate of 6.39 per cent for a loan over 25 years, the impact of 13 rate hikes since May 2022 has taken monthly repayments on a $500,000 loan up by $1,210 a month, and those on a $750,000 loan up by $1,815 a month.
While there is no certainty about when interest rates may fall, there are fears the impact of previous rate cuts may slow down the economy more than anticipated.
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