Australian mortgage holders can breathe a sigh of relief with the Reserve Bank holding steady on interest rates in consecutive months for the first time in more than a year.
The RBA board met on Tuesday and decided not to hike the cash rate, mirroring the July decision.
WATCH THE VIDEO ABOVE: New data shows home prices around Australia are still climbing.
Looking for a new job or job candidate? Post jobs and search for local talent on 7NEWS Jobs >>
It marks the first time the interest rate has remained unchanged in consecutive months since rates were hiked from the pandemic-low of 0.1 per cent last May.
The cash rate remains at 4.1 per cent.
Meanwhile, RateCity.com.au research director Sally Tindall said household deposits have “finally gone down” for the first time since May 2021, a factor the RBA considers when adjusting the cash rate.
“The total savings buffer across households is now on the decline as many families eat into their cash supplies to combat the double whammy of rising rates and cost of living pressures,” she said.
“While this turnaround is yet another sign the rate hikes are finally taking their toll, with $1.37 trillion still in the bank in savings accounts, term deposits, transaction and offset accounts, there’s still a giant buffer propping up the impact of these hikes for some Australians.
“The problem is, some households are still managing to build up their war chests, while others ate up their savings buffers months ago and are now struggling to stay afloat.”
Tindall advised borrowers to plan for at least two more hikes, and added “preparing for higher rates is never a bad idea”.
More to come…
If you’d like to view this content, please adjust your .
To find out more about how we use cookies, please see our Cookie Guide.