No mortgage relief for Aussie homeowners
The Reserve Bank of Australia (RBA) has left the interest rate on hold at three per cent for the third consecutive month, after meeting yesterday (April 2).
RBA governor Glenn Stevens said in a statement accompanying the board's decision that the downward global risks have abated, with the US experiencing modest expansion, while China's growth has stabilised.
And conditions are looking increasingly favourable in Australia, the governor said, adding that "dwelling investment is slowly increasing, with rising dwelling prices and high rental yields".
There are also several indications that interest cuts in late 2011 and 2012 have had an
"expansionary effect on the economy".
Mr Stevens concluded: "At today's meeting, the board judged that it was prudent to leave the cash rate unchanged."
Tim McKibbin, Real Estate Institute of New South Wales chief executive officer, said an interest rate cut is crucial for not only Australia's economy, but the residential property market, with it helping to drive a recovery in the sector.
"It is not too late to give the much-needed injection, but action is required sooner rather than later," he added.
The RBA slashed the official cash rate four times last year, shaving 125 points basis points off in total.