INTEREST RATES STEADY

The Reserve Bank has opted to hold interest rates steady at its board meeting today.

Mortgage holders have been hit by six rate rises since late last year.

Borrowers across the country have been hoping for the good news after being told by the Reserve Bank Governor, Glenn Stevens, that rates were near normal levels. Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were in September last year.

Despite Australia facing a desperate shortage of properties, which has been putting pressure on prices, the heat appears to have come out of some of the larger metropolitan markets. The property market is still strong but there is not the frenzy that was around a few months ago. That perhaps shows the rate rises already handed out by the Reserve Bank are starting to bite.