The Reserve Bank of Australia shocked many by raising the cash rate to 4.1 per cent earlier in June. Mortgage holders await to see if they are done for the year

 
Consumer inflation in Australia slowed to a 13-month low in May due to a sharp decline in fuel prices, as well as a measure of core inflation in a sign interest rates might not need to rise in July.

The Australian Bureau of Statistics reported recently that its monthly consumer price index (CPI) rose 5.6 per cent in the year to May, the smallest increase in a year.

That was down from 6.8 per cent the previous month and well below market forecasts of 6.1 per cent.

“A hold [on interest rate rises] is increasing in probability at the moment,” said Chris Ford from Compare the Market, however said that many in Australia’s banking sector are expecting two further hikes by year’s end.

The RBA made a surprising rate hike of 25 basis points earlier in June, bringing the cash rate to 4.1 per cent, the highest level since 2012.