Interest rates should now stay on hold for some time after the latest increase by the Reserve Bank of Australia (RBA) on Tuesday, a mortgage broker says.

The RBA raised the cash rate by 25 basis point to 3.5 per cent following Tuesday’s board meeting, following a similar increase last month.

Loan Market Group executive chairman Sam White said the RBA has responded to Australia’s strong economic performance.

“By getting in early they are solving any possible inflation pressures,” Mr White said in a statement.

“It means we’re going to have fewer rate rises in the future and this rise hopefully should be the last for some time to come.”
Full Story