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RBA holds rates again: Is this the end of home loan rate rises?

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The RBA has held the cash rate for 2 months in a row as inflation slows.

Today the Reserve Bank of Australia decided to hold the official cash rate at 4.10% again.

72% of the experts in Finder's RBA survey predicted today's rate decision.

A longer break from rate rises is welcome news for borrowers who are yet to feel the full impact of the RBA's intense cycle of rate rises.

The RBA increased the cash rate 12 times since May 2022 and has now paused for a second month in a row.

Today's decision is a result of falling inflation. While still high, the latest consumer price index figures show that we've likely passed the peak of inflation.

This means the RBA's rate hikes are having an effect. But it's hard to say if this is the end. Inflation is still high, and most experts in Finder's latest survey predict at least one more rate rise in the coming months. And this will be difficult for many borrowers to bear.

40% of Australian borrowers in July say they're currently struggling to pay their home loan, according to Finder's Consumer Sentiment Tracker.

Do borrowers need to do anything this month?

While most borrowers will likely sit tight this month and forget about their home loan, it's worth reviewing your loan all the same.

You should take a look at how much you're spending on loan repayments each month. Maybe it's time to tighten your budget after so many rate rises.

And compare home loan rates from multiple lenders. You might find that there's a better deal out there, regardless of what the Reserve Bank is doing with rates.

Need a better home loan? Check out some of the market's lowest rates.

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