RBA Holds Cash Rate at 4.35% Amid Mortgage Holder Concerns

The Reserve Bank of Australia (RBA) has decided to keep the cash rate at 4.35 per cent, maintaining it for the second consecutive meeting in June. This decision aligns with most money markets and economists' expectations.

Mortgage holders can breathe a sigh of relief as this rate freeze is expected to benefit 65% of Australian households who were worried about another rate hike breaking their budget. 'While another rate rise might look modest on paper, many Australians feel like they've already absorbed as much as they can,' said Compare the Market's economic director David Koch.

The RBA had previously raised rates in February, March, and May, prompting concerns among mortgage holders about increased mortgage repayments and its impact on their overall wellbeing. The decision to keep rates unchanged may provide some respite for households struggling with financial stress.