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The RBA suspended interest rates at its October meeting for the fourth month in a row, a move that will bring huge relief to millions of borrowers across the country.
On Tuesday afternoon, Australia's central bank announced it would maintain its base interest rate at 4.1%.
This is also the first month that the RBA operates under new management, with Michele Bullock taking over from former governor Philip Lowe after he resigned.
The decision to maintain this exchange rate is completely consistent with market expectations. A panel of 38 financial experts organized by comparison site Finder found that 100% of panellists predicted a rate pause. This is the first time since the rate hike began last May that the entire panel has agreed.
The RBA has raised interest rates every month since May last year, apart from April, July, August, September and now October, providing welcome support to mortgage holders in Australia.
However, as it stands, Australians are grappling with the country's highest currency interest rates since 2011, with a 400-basis point increase in a year. Spot interest rates have increased significantly from an all-time pandemic low of 0.1% to the current level of 4.1%.
And even with the pause, Australians still face additional costs from lenders. In his first official statement as the new governor, Bullock said multiple interest rate hikes were “finally working.”
We still haven't seen the results of the RBA's numerous months of consecutive interest rate increases.