Interest rates: time to fix?

With the Reserve Bank of Australia (RBA) deciding to leave interest rates unchanged, many Australians may be wondering whether it is time to fix their mortgage rates when they compare home loans.

However, the Sydney Morning Herald’s economics editor Ross Gittins has assured homeowners and first home buyers that more interest rate cuts are on the way.

The interest rates expert insisted that the RBA decided to hold steady this month to allow the country to take stock of the unprecedented slashes made to the interest rate since September.

In the sixth months since then, the RBA has taken a whopping 400 basis points off the base interest rate, with banks rushing to bring out a bevy of new low-interest home loans after each cut was made.

Explaining the Reserve Bank’s strategy, Gittins insisted: "We’re sitting back. We’re about where we think we need to be for the moment so we’re sitting back and we’re seeing what happens."

The decision to hold off this month may well make next month’s decision from the RBA even more eagerly anticipated.ADNFCR-1761-ID-19055158-ADNFCR