Interest rates on hold - again, for the 8th consecutive month

Posted on 5/07/2011  

The Reserve Bank today decided to keep interest rates on hold, in a move that surprised no one - including the economists who predicted a rise to generate cheap publicity for their businesses.

The official interest rate remains 4.75%. Mortgage holders on variable interest rates are being charged a standard variable rate of 7.83% on average.

Consumers, however, should prepare themselves for the headlines in tomorrow’s fish-and-chips wrappers, which will focus not on the decision to keep rates on hold for the 8th consecutive month, but on the predictions that the next rise is “just around the corner” – just as it was in February, March, April, May, June and July.

Earlier today I posted an article which noted that rising numbers of Australians are opting for fixed-rate loans because of the incessant speculation of impending interest rate rises. Yet, there have been no increases since November last year.

ENDS

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