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April 2nd, 2013 
Peter Nolan 
The Reserve Bank kept the cash rate on hold at 3.0 per cent at its April board meeting.
Source: AAP
HOMEOWNERS’ chances of scoring further mortgage relief are looking increasingly slim after the Reserve Bank of Australia kept its cash rate on hold for a third straight month.
The RBA held the cash rate at three per cent, equal to its lowest level on record, at its April board meeting on Tuesday.
It has kept the rate steady in 2013 after cutting by 1.25 percentage points between May and December last year.
RBA governor Glenn Stevens said there were signs the interest rate cuts delivered in 2011 and 2012 were already having the desired effect.
The economy was also expected to grow at close to its normal pace over the next year.
But, with inflation close to the middle of the RBA’s target range, he said there was room to cut the cash rate again, if economic conditions deteriorated.
“The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand,” he said.
AMP Capital chief economist Dr Shane Oliver it did not appear the RBA would be cutting rates again any time soon.
“There’s no indication that they’re about to move next month,” Dr Oliver said.
Either the Australian or global economy would need to take a turn for the worse for the RBA to consider cutting again.
“To get further the easing, the signs of improvement that we’re currently seeing would have to peter out or there’d have to be some sort of global shock and they certainly don’t seem in any rush to move.”
UBS economist George Tharenou said that although a further interest rate cut was possible, it was likely the RBA would keep the cash rate on hold for the rest of 2013.
He said the RBA appeared more confident that the non-mining sectors of the economy would pick up as the resources investment boom peaked.
“Our view is that, baring some unforeseen risk event, the RBA is going to remain on hold from here,” he said.
Mr Tharenou said a recent improvement in house prices was a sign that last year’s interest rate cuts were having the desired effect.
Home prices have risen by an average of 2.8 per cent across Australia’s capital cities since the start of 2013, the latest RP Data-Rismark hedonic home value index found.
CommSec chief economist Craig James said it appeared buyers were taking advantage of low interest rates and returning to the market after a weak 18 months for the housing sector.
“It appears that people are starting to come back from underneath their beds and are starting to get on with life,” he said.
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