The monetary policy call, the fifth successive hold, was widely considered a foregone conclusion, predicted by all four major banks.

With the labour market slowly softening and measly economic growth in line with RBA forecasts, Governor Michelle Bullock and the rest of the board once again decided against further rate hikes.

However, with inflation still far above target levels, there was also not a compelling case to cut rates yet.

"There have been indications that momentum in economic activity is weak, including slow growth in GDP, a rise in the unemployment rate and slower-than-expected wages growth." Ms Bullock said in her post meeting statement.

"At the same time, the revisions to consumption and the saving rate and the persistence of inflation suggest that risks to the upside remain."

Attention will now turn to the August RBA meeting, which will benefit from coming after the June quarter CPI inflation read.

As it stands, August could be set to be the most 'live' decision of the year, depending on the data.

No relief for mortgage holders

For many mortgage holders, it means at least another couple of months of pain without a reduction to variable rates.

Michelle Bullock has acknowledged those struggling with high rates, but has pointed to sizeable savings buffers built up during the pandemic as evidence households have been, and will continue to be able to cope.

Data from APRA released last week showed a record amount in Australian's offset accounts, which Ms Bullock pointed to when addressing parliament last year to discuss the plight facing mortgage holders.

"[It] is important to remember...that a lot of the block of savings that is sitting there is sitting in mortgage offsets and redraws," Ms Bullock said.

"As interest rates rise, there's much more incentive for people to offset."

Home owners may also be taking solace in property prices, which continue to defy conventional wisdom across Australia and rise in spite of high rates.

"The imbalance between housing supply and demand has offset the higher interest rate environment and deterioration in affordability, fuelling home prices," PropTrack Director of Economic Research Cameron Kusher commented.

Time to lock in a deposit?

While it normally gets overlooked, high interest rates also present an opportunity for those looking to grow their savings.

Last week, G&C Mutual Bank dropped a market leading rate of 5.40% p.a on one year term deposits, the highest since winter of last year.

Given rates could be set to remain higher for longer (ANZ has already pushed back its forecast for rate cuts to February 2025), Australia could be set for more big returns on term deposits and savings accounts.

Picture from the Reserve Bank of Australia

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