RBA UPDATE – AUGUST 2023

RBA UPDATE | Effective August 2, 2023

The Reserve Bank of Australia (RBA) has announced the official cash rate will remain steady at 4.10% giving Australian homeowners a much-needed reprieve.

Data from S&P Global Ratings has found that households in the outer suburbs of the major capital cities are showing to be the most affected. Mortgages ‘over 30 days late’ are highest in Sydney’s south-west region, Perth’s north-west, Melbourne’s north-west, Sydney’s outer west and the Blue Mountains area, respectively.

Get in touch with your mortgage broker or finance professional if you would like to evaluate your current financial situation to ensure it is still suitable for your needs.

After their board meeting, the Reserve Bank of Australia (RBA) has announced their third hold this year. The official cash rate will remain steady at 4.10% for another month, giving Australian homeowners a much-needed reprieve.

Dr Philip Lowe, Governor of the RBA stated, “The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy”. However, while the nation’s inflation rate is declining, Dr Lowe and the board warm that it “is still too high at 6 per cent.”

“The outlook for household consumption is also an ongoing source of uncertainty. Many households are experiencing a painful squeeze on their finances, while some are benefiting from rising housing prices, substantial savings buffers and higher interest income,” explains Dr Lowe.

According to new data from S&P Global Ratings, households in the outer suburbs of the major capital cities are showing to be the most affected by the ongoing rate increases. Mortgages ‘more than 30 days late’, are highest in Sydney’s south-west region, with 2.5% of borrowers behind in their repayments. Followed by borrowers in Perth’s north-west, Melbourne’s north-west, as well as Sydney’s outer west and the Blue Mountains area; all of which are sitting around 2%.

Get in touch with your mortgage broker or finance professional if you would like to evaluate your current financial situation to ensure it is still suitable for your needs.

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