The Reserve Bank of Australia (RBA) is tipped to keep interest rates on hold next week, but hard-pressed mortgage holders should expect a cut by Christmas.
From 36 economic experts canvassed in the latest Finder Cash Rate Survey, 81 per cent believe the central bank will hold the rate at 4.35 per cent when it wraps up its meeting next Tuesday.
The first interest rate cut is expected to be made by the RBA in December by one in four of the economists.
READ MORE: Refinery plant closure means 300 Aussie jobs lost
Predictions of a hold come in the wake of data released earlier this week showing Australia’s headline annual inflation has risen to 3.8 per cent, largely meeting market expectations.
Finder head of consumer research Graham Cooke says, despite seven of the experts in the survey predicting a rate increase, the inflation figures aren’t high enough to warrant a hike.
“While inflation has been a stubborn thorn in the economy, the June quarter CPI data was in line with expectations, although still higher than the RBA would like it to be,” he said.
“Australia’s core inflation rate, which excludes the most volatile products such as food and energy, has slowed enough to almost rule out another rate rise.
“This doesn’t mean we will see a rate cut in August, but there is a chance we’ll get one by Christmas.”
OLYMPIC SCHEDULE: Your day-to-day guide to all the action in Paris, in AEST times
While there is hope on the horizon for mortgage holders, many are struggling with their repayments.
A whopping 41 per cent of homeowners struggled to pay their mortgage last month, up from 34 per cent in June, according to Finder’s research.
“The number of Australians who are struggling to afford their monthly mortgage repayments has been steadily trending upwards since 2021,” said Cooke.
“Millions of homeowners are desperate for relief with borrowers anxiously waiting for rates to start dropping.”
Watch every moment, every medal of the Olympic Games Paris 2024 live and free on Channel 9 and 9Now. Plus, every event ad-free and in 4K on Stan Sport.
links to content on ABC
9News
