Cash rate hold to offer home owners relief and buyers a boost of confidence

Property experts hope the decision will boost confidence and give buyers a "nudge" to get into the market this winter.

Economists were divided on whether the cash rate would remain at 3.6 per cent or increase again this month.

For Ray White chief economist Nerida Conisbee there were "no surprises" the central bank would hold the cash rate after inflation eased in February.

"While concerns about a global banking crisis were a likely factor, it is good news that inflation is now pulling back quicker than expected," she said.

"February inflation came in at 6.8 per cent. If this continues to come down over the coming months, it is likely that we are now at peak interest rates and the next change will be a cut."

The pause in rate rises could lead to a busy winter for the property market, LJ Hooker Group head of research Mathew Tiller said.

"From a property perspective, the hold will give buyers a bit of a nudge to start looking knowing we may have now passed the bottom of the market," he said.

"They will be able to go to the banks and set a longer-term budget with the realisation that interest rates are not likely to change and that now is the time to go and buy property.

"Those coming off cheaper fixed rates who have been concerned about their ability to make mortgage repayments will be able to refinance with the possibility of securing a better deal from the banks."

Tuesday's announcement will come as a relief to property owners like Jessika Lomas and Lachlan Rice, who purchased their first home in Canberra three years ago.

Their low fixed rate of just over 2 per cent recently came to an end, so they worked with their broker to refinance and get a better deal than the 6 per cent their existing bank was offering.

They've now locked in another fixed rate term with a different lender, but the jump in repayments has been a big adjustment.

"It's actually quite difficult," Ms Lomas said.

"I am a nurse so I have been picking up extra shifts to help with that increase, because it was quite significant. It's a lot more money than we were paying."

Ms Lomas said another fixed rate gave the pair some certainty if rates were to keep rising this year.

"We just sort of wanted the peace of mind," she said.

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Loan Market Canberra franchise owner Nitish Kumar said some banks had begun lowering their fixed rates in the past week.

"One of the non-major banks dropped their fixed rate 30 basis points for their three-year fixed rate. So I think we're starting to see some movement already on the fixed rate," he said.

But borrowers should be aware of "out-of-cycle increases", Mr Kumar said.

"Even though the RBA has put [the cash rate] on hold doesn't necessarily mean the banks won't have any rate movements. So it's probably more important to look at all the bank options out there rather than just looking at your own bank," he said.

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