The RBA has increased the cash rate to 3.60 per cent. If you have a home loan, here’s what you need to know:
- The Board has decided to increase the cash rate by .25% and most lenders are expected to follow suit.
- Global inflation remains very high, but it is expected to moderate over time.
- Growth in the Australian economy has slowed and is expected to be below trend in the coming years.
- In contrast, the outlook for business investment remains positive.
- The labour market remains tight, with low unemployment rates and increasing wages. However, the RBA remains alert to the risk of a price-wages spiral.
- The Board’s priority is to return inflation to target while keeping the economy stable.
- It’s likely that further tightening of monetary policy will be needed to achieve this goal.
- The RBA will closely monitor developments in the global economy, household spending, inflation, and the labour market when making future decisions about interest rates.
We understand that rising interest rates will have an impact on your household spending and budget. While some households have savings they are trying to preserve, others may be experiencing a real financial squeeze. As lending specialists, we can help you understand the impact of these changes on your cash flow and find ways to manage your repayments.