Interest Rates Rise - Tuesday 3rd August 2010

The Reserve Bank has decided not to increase interest rates this month, leaving the official rate at 4.50%.

If inflation was running outside of the Reserve Bank's target band of 2 per cent to 3 per cent, the central bank might have lifted rates at its board meeting today. 
The RBA board has again opted to hold interest rates steady at it's board meeting today.

This is welcome news to investors and homebuyers who have been hit by six rate rises since last year. Borrowers across Australia have been hoping for a hold on rates which will now bring rates near to normal levels.  With each 0.25 per cent rise adding another $50 per month to an average mortgage size, Australian mortgage holders are already paying an extra $300 more per month in repayments than they were in September last year.