Australia’s official interest rate unchanged at 3.25 in November
The move by the Reserve Bank of Australia (RBA) defied expectations for a rate cut, which would have followed a 25 basis point cut last month.
A rebound in commodity prices and higher inflation data were among the reasons provided by the central bank for keeping interest rates on hold.
The Housing Industry Association (HIA) says the decision to keep rates on hold is disappointing amid soft house prices. However, HIA said a multi-rate cut in the December quarter could lift confidence enough to generate a rise in new home building, which is at recessionary lows.
The housing industry would be hoping some – if not all – of any future RBA cut will be passed on in full to homeloan borrowers. Many of Australia’s major lenders have not followed the RBA’s lead in cutting rates in recent times.