<?xml version="1.0" encoding="ISO-8859-1"?> <docID>341580</docID> <postdate>2025-04-01 14:43:18</postdate> <headline>No back-to-back mortgage relief as RBA holds rates</headline> <body><p><img class=" wp-image-341581" src="https://citynews.com.au/wp-content/uploads/2025/04/20250218156787199311-original-1-scaled.jpg" alt="" width="1104" height="736" /></p> <caption>Mortgage holders will have to wait longer for more relief after the RBA kept interest rates on hold. (Dean Lewins/AAP PHOTOS)</caption> <p><span class="kicker-line">By <b>Jacob Shteyman</b> in Canberra</span></p> <p><strong>The Reserve Bank of Australia has kept interest rates on hold, denying borrowers back-to-back mortgage relief.</strong></p> <p>As widely expected by economists, the RBA's new monetary policy board held the cash rate steady at 4.1 per cent as its first meeting on Tuesday.</p> <p>Markets had priced in just a 10 per cent chance of a cut, despite the central bank kicking off a long-awaited rate easing cycle in February.</p> <p>Hawkish commentary from governor Michele Bullock and other RBA officials - pouring cold water on market predictions for further cuts - had tempered expectations.</p> <p>"The board is resolute in its determination to sustainably return inflation to target and will do what is necessary to achieve that outcome," the board said in its post-meeting statement.</p> <p>The board has reiterated its concerns that tightness in the labour market could risk keeping inflation higher for longer.</p> <p>But a softer-than-expected employment release from the Australian Bureau of Statistics in March - 53,000 jobs dropped out of the economy - showed early signs of a loosening in labour force indicators, said CoreLogic research director Tim Lawless.</p> <p>Inflation showed further signs of easing in monthly figures released last week, but the RBA will be looking for more proof of a sustainable return to its two-three per cent target band.</p> <p>"The outlook for interest rates remains positive, with the cash rate likely to reduce further in 2025, but only gradually," Mr Lawless said.</p> <p>"The quarterly inflation outcome, which will be released on April 30 ahead of the RBA's next board meeting, will be a key factor influencing the RBA's decision in May."</p> <p>While the board remained locked in their conclave earlier on Tuesday, the ABS reported retail sales grew at 0.2 per cent in February.</p> <p>That was slightly below consensus expectations for a 0.3 per cent rise in spending, but further bolsters the case that household consumption was recovering, if only very gradually.</p> <p>Food-related spending drove the rise, with household goods dropping for a second-straight month, said ABS head of business statistics Robert Ewing.</p> <p>"Following promotion-based growth across the December quarter, spending on household goods continued to moderate with lower discretionary spending to begin the year," Mr Ewing said.</p> <p>The figures don't materially change the outlook for consumer spending, said Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia.</p> <p>But low unemployment and real wages growth bode well for future consumption.</p> <p>"Last week's federal budget also contained more support for households through extended utilities rebates and tax cuts, which further shores up the outlook if these policies are legislated," he said.</p> </body>