1 00:00:00,120 --> 00:00:02,720 Speaker 1: All right, So, as predicted by economists, of Reserve Bank 2 00:00:02,720 --> 00:00:05,040 Speaker 1: has kept the OCA at three point twenty five percent. 3 00:00:05,760 --> 00:00:08,480 Speaker 1: This comes after six consecutive cuts since last August. The 4 00:00:08,520 --> 00:00:11,520 Speaker 1: Reserve Bank reckons it needs more clarity on inflation, but 5 00:00:11,520 --> 00:00:14,960 Speaker 1: that rusted and inflation's high. Things like rates and insurance 6 00:00:14,960 --> 00:00:16,919 Speaker 1: and all that sort of stuff. But they're also worrying 7 00:00:16,960 --> 00:00:20,120 Speaker 1: about the local economy and international trade going forward. But 8 00:00:20,200 --> 00:00:23,040 Speaker 1: at the end of the day, for us, it means 9 00:00:23,040 --> 00:00:24,959 Speaker 1: what does it mean for your mortgage? And Lee Hodges 10 00:00:25,120 --> 00:00:28,360 Speaker 1: is the Finance and Mortgage Association country manager and joins me. Now, 11 00:00:28,360 --> 00:00:28,920 Speaker 1: good morning to. 12 00:00:28,840 --> 00:00:31,360 Speaker 2: You, Lee, Good morning, how are you. 13 00:00:31,520 --> 00:00:33,960 Speaker 1: I'm well. Were you disappointed that there wasn't a cut? 14 00:00:35,479 --> 00:00:38,920 Speaker 2: Look, we certainly were, and most borrowers around the country 15 00:00:38,920 --> 00:00:42,160 Speaker 2: would have felt disappointed as well. It just I think 16 00:00:42,840 --> 00:00:45,440 Speaker 2: it's a breath. We're pausing at the moment, but we 17 00:00:45,440 --> 00:00:48,839 Speaker 2: were hopeful of at least at twenty five basis points 18 00:00:49,120 --> 00:00:51,879 Speaker 2: reduction this month, so we hold out for August. 19 00:00:51,920 --> 00:00:54,880 Speaker 1: Now, well, exactly, Well, why do you think we need 20 00:00:54,880 --> 00:00:57,200 Speaker 1: a cut, Why do you think we need lower interest rates? 21 00:00:58,400 --> 00:01:02,720 Speaker 2: Well, I think it's still the household spending is very stretched. 22 00:01:02,760 --> 00:01:05,639 Speaker 2: You just mentioned that the cost of living is still 23 00:01:05,720 --> 00:01:08,960 Speaker 2: really high in different areas around the country. We're seeing 24 00:01:09,600 --> 00:01:12,880 Speaker 2: different economic pressures in the regions and the city. So 25 00:01:13,280 --> 00:01:16,360 Speaker 2: what we are seeing that people are a little stretched 26 00:01:16,360 --> 00:01:21,280 Speaker 2: still and looking for that bit of relief in household spending, 27 00:01:21,360 --> 00:01:24,479 Speaker 2: I guess, and interest rates coming down and being able 28 00:01:24,520 --> 00:01:28,040 Speaker 2: to afford more putting money into other things apart from 29 00:01:28,080 --> 00:01:30,240 Speaker 2: paying interest to a banker is something that they would 30 00:01:30,240 --> 00:01:30,840 Speaker 2: look forward to. 31 00:01:31,280 --> 00:01:33,480 Speaker 1: And reading the tea leaves you mentioned August, do you 32 00:01:33,560 --> 00:01:35,840 Speaker 1: think you could get a cut by then? Ll do 33 00:01:35,880 --> 00:01:39,640 Speaker 1: you think the Reserve Bank is really sitting on their hands. 34 00:01:39,800 --> 00:01:42,000 Speaker 2: I think all the sentiment is that the Reserve Bank 35 00:01:42,040 --> 00:01:47,400 Speaker 2: will drop another twenty five basis points in August. We 36 00:01:47,440 --> 00:01:50,280 Speaker 2: feel we're getting towards that bottom or that target range 37 00:01:50,320 --> 00:01:54,000 Speaker 2: with interrastrates, and we just feel the sooner we reach 38 00:01:54,120 --> 00:01:56,840 Speaker 2: that the better. I think it will just stimulate the 39 00:01:56,920 --> 00:02:00,480 Speaker 2: market a little bit more. We're seeing a lot of people, 40 00:02:01,440 --> 00:02:04,080 Speaker 2: particularly first time buyers, trying to get into the market, 41 00:02:04,160 --> 00:02:05,720 Speaker 2: and I think how a little bit of a reduction 42 00:02:05,800 --> 00:02:09,200 Speaker 2: will help them again to move back in, and it'll 43 00:02:09,240 --> 00:02:13,640 Speaker 2: stimulate the housing market as well. Investors might jump back in. 44 00:02:13,720 --> 00:02:15,799 Speaker 2: It might just things might line up a little bit 45 00:02:15,800 --> 00:02:18,960 Speaker 2: better and we'll see some positive signs in both of 46 00:02:19,000 --> 00:02:19,880 Speaker 2: those directions. 47 00:02:20,120 --> 00:02:22,359 Speaker 1: Lee, I thank you for your time today, Lee Hudgits 48 00:02:22,440 --> 00:02:24,680 Speaker 1: the Finance Mortgage Association country manager. 49 00:02:25,600 --> 00:02:28,560 Speaker 2: For more from Early Edition with Ryan Bridge. Listen live 50 00:02:28,720 --> 00:02:31,720 Speaker 2: to news talks. It'd be from five am weekdays, or 51 00:02:31,760 --> 00:02:33,679 Speaker 2: follow the podcast on iHeartRadio.