RBA holds rates, eyes cut – Finsure

Brokers play a key role in helping customers, CEO says

RBA holds rates, eyes cut – Finsure


By Mina Martin

The Reserve Bank (RBA) kept the OCR unchanged at 4.35% during its March board meeting, in line with expectations of most market watchers, including Finsure, which also anticipated a potential interest rate cut before the year concludes.

Prior to RBA’s March meeting, Finsure CEO Simon Bednar (pictured above) said the central bank will likely keep the cash rate steady at 4.35% due to positive economic developments. Bednar also reassured mortgage holders that interest rates are unlikely to increase further, suggesting the possibility of a rate cut before year’s end.

“It made sense for the RBA to keep rates on hold at their March meeting,” Bednar said. “I expect the board is pleased with the progress with the battle to control inflation, and they don’t want to stimulate spending with a reduction at this stage.

“However, overall, the year is looking more buoyant and positive so expect at least one cut before Christmas.”

RBA last increased the cash rate in November, marking the 13th hike since it initiated efforts to combat high inflation in May 2022, before which the official rates were at a historic low of 0.1%.

“With the rate increases making conditions tougher for mortgage holders, brokers have been playing a key role helping customers through the higher rates and the cost-of-living crisis,” Bednar said.

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