RBA holds rates as housing market correction deepens

The Reserve Bank of Australia has kept interest rates on hold while warning that inflation will remain elevated until the end of next year, meaning mortgage repayments will continue pressuring household budgets for at least 18 months. Property values are falling faster than the RBA anticipated, partly due to tax system changes introduced in the May budget, with house prices expected to decline by up to 8% through the rest of the year and into next year. HSBC Chief Economist Paul Bloxham explains the RBA wants the economy to remain weak to control inflation, and interest rate cuts are unlikely until well into next year.See omnystudio.com/listener for privacy information.