Struggling mortgage-holders can breathe a sigh of relief, with the Reserve Bank giving another strong hint that interest rates will stay on hold this year.

The RBA left interest rates on hold at 7.25 per cent earlier this month, and the details why have been released today.

The bank is keeping a close eye on rising petrol prices and how that feeds into inflation.

But Westpac economist Matthew Hassan says consumer demand is slowing and that means rates are likely to remain on hold both this year and next.

“This is quite clearly Reserve Bank on hold, and I think that is of some comfort to households.”

The nine-member board will again decide on rates in August.

However, unlike last time they’ll have the latest inflation numbers to think about — they come out next week.

Source: livenews.com.au,  15/07/2008, Yoni Bashan