In good news for home loan borrowers, the Board of the Reserve Bank of Australia decided to leave the cash rate unchanged at 7.25% at its meeting today. In making its announcement earlier this afternoon the Board cited "tentative evidence that growth in domestic demand is moderating", a "softening in business and consumer sentiment in the early part of 2008". In the Board's view these economic changes, plus a slowing in "global growth", will combine to slow inflation which the Board has been targeting with its recent monetary policy settings. Or as the RBA's website puts it, "the Board's judgment is that the current monetary policy setting is appropriate for the time being". However you put it, as home loan borrowers you can breathe easy for another month... unless your lender decides to increase rates independently.
