Good afternoon. Mortgage holders have been spared another rate hike, with the Reserve Bank today electing to pause the cash rate at 4.1%.
Expectations of a pause increased after the monthly inflation rate in May fell to 5.6%. The RBA governor, Philip Lowe, has warned more rate rises are possible, “but that will depend upon how the economy and inflation evolve”. Millions are doing it tough with interest rates at their current high, with data showing first home buyers are allocating, on average, 37.4% of their income to service their loans – a massive jump from 24.6% in 2019.
