RBA interest rate pause hint in Philip Lowe's statement gives hope to homebuyers trends now

The insertion of a single word into the RBA statement accompanying the most recent rate increase could signal a reprieve for hard-pressed mortgage holders. 

In announcing Tuesday's 10th straight month of increases, taking the cash rate to an 11-year high of 3.6 per cent, Governor Philip Lowe gave a subtle hint the central bank might finally be looking to take its foot off the economic brake.

In deciphering the RBA's characteristically cautious language a single change from the previous month can make a huge difference and a number of commentators seized on the word 'when' in Dr Lowe's latest pronouncement.

In Tuesday's statement Dr Lowe said the RBA would look at various data in 'assessing when and how much further interest rates need to increase', whereas previously he had only talked about 'how much' the rates would rise. 

Westpac's chief economist Bill Evans noted that while the RBA was still predicting rate rises would likely be necessary the timing of those increases had suddenly become open to question.

'There is some clear evidence in the Governor's Statement that a pause can be expected in April but the big picture for inflation has not improved sufficiently to justify that call,' Mr Evans said.

'We continue to expect rate increases in both April and May.'

AMP Chief Economist Shane Oliver also thought Dr Lowe's statement could point to a hiatus in the rises.

'It (Dr Lowe's statement) is still hawkish but has opened the door to a pause which we expect next month,' he said.

'We think that the RBA has done enough and should now pause and that is our base case for next month.

'Continuing to raise rates from here risks plunging the economy into a recession.'

In his statement Dr Lowe asserted taming inflation was still the RBA's main priority but noted some price rises were finally starting to slow.