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Men's Weekly

Interest rates are on hold at 3.85%, as the Reserve Bank opts for caution over mortgage relief

  • Written by Stella Huangfu, Associate Professor, School of Economics, University of Sydney
Interest rates are on hold at 3.85%, as the Reserve Bank opts for caution over mortgage reliefThurtell/Getty Images

The Reserve Bank of Australia has kept the cash rate at 3.85%, after cutting it in February and May.

Those earlier moves were aimed at supporting the economy as growth slowed and inflation eased. This time, however, the bank chose to pause, signalling a more cautious stance.

The decision will be hard for the millions of mortgage...

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