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Home-owners face no immediate rise in their mortgage repayments after the Reserve Bank kept interest rates at 5.5 per cent. Analysts had expected the Reserve Bank to leave the official interest rate at 5.5 per cent, following relatively benign inflation figures last week and lower than expected producer price index results. Business surveys in recent weeks have also pointed to a slowing economy, while building approval figures showed a 6.8 per cent slump in March. That followed the last interest rate rise. Commsec chief equities economist Craig James said home owners would escape another rate rise for some time. "Homeowners can breathe a sigh of relief and probably for another couple of months," he told Sky News. Despite leaving rates on hold, analysts believe the central bank is likely to lift rates at least once more this year. The bank will release its statement on monetary policy on Friday which should give some indication on its thinking towards another rate rise. The decision is good news for Treasurer Peter Costello who will hand down his 10th budget next Tuesday. While the bank left rates on hold, its United States counterpart again lifted rates in America to 3.0 per cent. There are concerns there that high oil prices are starting to feed into inflation. |
