Unveiling The Reasons Behind The Stable Interest Rates That Stunned The Finance Industry

Finance guru Ross Greenwood has given hope to Australian homeowners struggling to repay their mortgages. According to Greenwood, Reserve Bank Governor Philip Lowe will end the streak of ten consecutive monthly rises in Australia’s cash rate on Tuesday. Thisiss a relief to many households who have seen their repayments rise as the cost of living has soared. The official cash rate currently stands at 3.60%, increasing from 0.1 percentage points in the last 11 months. The hike has caused many to hesitate before entering the property market and has put households under mortgage stress.

Greenwood believes the rate hike will be put on hold to support Lowe’s speech on Wednesday. The pundit predicts that there will be a change in the message from the Governor, hence why rates won’t change. He also noted that last week’s inflation data showed that cost of living pressure may be beginning to flatten.

Despite the positive sentiment, Economist Warren Hogan believes the RBA should increase the cash rate by 25 basis points. According to Hogan, the central bank has more work to do to bring inflation down, and all the risks, particularly inflation, remain sticky.

Related Facts:

– Australia’s consumer price index increased 6.8% in the year to February, the slowest rise since June.
– The rate hikes have caused thousands of buyers to hesitate before entering the property market.
– Mr. Lowe’s job as RBA boss is under review.

Key Takeaway:

The prediction that the RBA will end the streak of monthly rate hikes is good news for Australian homeowners. The rate hike has caused many households to struggle to make their mortgage repayments,deterringd many buyers from entering the property market. Although there are differing opinions on whether the RBA should increase the cash rate, many hope for some relief in Tuesday’s RBA update.

Conclusion:

The RBA update on Tuesday is highly anticipated and will impact Australia’s housing market significantly. While some analysts predict that the RBA will increase the cash rate, others believe it will be put on hold to support Lowe’s speech. Either way, the outcome will determine the fate of many householdsstruggling to repay their mortgagess.