New Reserve Bank Governor keeps cash rate steady

Michele Bullock, the new Reserve Bank Governor, has chosen to keep the cash rate steady, providing relief to borrowers.

This decision comes amidst expectations of another interest rate rise.

However, the relief might be temporary.

Many economists predict an increase before Christmas.

Currently, with the cash rate at 4.1 per cent, a survey found that more than half of the economists expect rates to rise to 4.35 per cent or higher by year’s end.