- The Reserve Bank left interest rates unchanged
The Reserve Bank has dealt another blow to millions of Australians with mortgages by refusing to cut interest rates.
The cash rate remained unchanged at a 12-year high of 4.35 percent, even though the United States, Britain, Canada, the European Union and New Zealand have all cut interest rates this year.
Federal Reserve Governor Michele Bullock on Tuesday delivered a blunt message to borrowers hoping for some relief soon.
“While headline inflation will ease for a while, core inflation is more indicative of inflationary momentum and remains too high,” he said.
Core inflation, excluding volatile price movements, was 3.9 per cent in the year to June, well above the RBA’s target of 2 to 3 per cent.
The futures market had considered a rate cut to have only a 10 percent chance before Tuesday’s decision.
The Reserve Bank has dealt another blow to millions of Australians with mortgages by refusing to cut interest rates (pictured, Brisbane’s Queen Street shopping centre)
Federal Reserve Governor Michele Bullock on Tuesday sent a blunt message to borrowers hoping for some relief soon.
