'Breather for home owners as rates held'

04/07/2007

The Reserve Bank of Australia (RBA) has left interest rates unchanged for the eighth month in a row, offering some certainty for homebuyers. Interest rates are now likely to remain on hold for the rest of 2007, barring any spike in inflation. The widely expected decision today follows a central bank board meeting yesterday to consider monetary policy and precedes the next set of inflation data due later this month. Economists say that while no change in rates is expected at least until early next year, the RBA will be keeping an eye on price pressures given a tight labour market and the potential threat posed by rising wages. The Age AAP July 4th 2007