The Reserve Bank of Australia has held the cash rate at 4.1 per cent, and it is the second time in 15 cycles that this has occurred.

As it stands, the underlying inflation rate is approximately 6.5 per cent.

Saul Eskale, Independent Economist and former ANZ Chief Economist told Jo Mcmanus on 6PR Afternoons, “A further increase of interest rates may be required to ensure inflation returns to target in a reasonable time frame.

“For the time being, at least for the next month, homebuyers and people with mortgages can breathe something of a sigh of relief,” Mr. Eskale said.

Press PLAY to hear the breakdown of the RBA’s decision 

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