RBA UPDATE – FEBRUARY 2023

RBA UPDATE | Effective February 8, 2023

As its first decision of the year, The Reserve Bank of Australia (RBA) has revealed their ninth consecutive rate rise, bumping the cash rate by 25 basis points to 3.35%. This increase was anticipated, and most banks and economists are predicting that the nation will encounter another 1-3 rate rises before the year’s end.

With many mortgage holders, who purchased property during COVID, coming off their fixed rate period this year, it is now more important than ever for Australian homeowners to get in contact with a mortgage broker or trusted finance professional to assess their position and ensure they are well prepared for what 2023 may bring.

As its first decision of the year, The Reserve Bank of Australia (RBA) has revealed their ninth consecutive rate rise, bumping the cash rate by 25 basis points to 3.35% and maintaining an unprecedented series of hikes for Australian mortgage holders. This increase was anticipated, and most banks and economists are predicting that the nation will encounter another 1-3 rate rises before the year’s end.

PropTrack director for economic research Cameron Kusher commented, “With borrowing costs continuing to rise and the subsequent reduction in borrowing capacities, property price falls are likely to continue and accelerate in 2023, with the more expensive cities likely to see the largest price falls.” Mr Kusher added, “Nationally, we are forecasting [property] prices to fall by a further 7 per cent to 10 per cent by the end of this year.”

With many mortgage holders, who purchased property during COVID, coming off their fixed rate period this year, it is now more important than ever for Australian homeowners to get in contact with a mortgage broker or trusted finance professional to assess their position and ensure they are well prepared for what 2023 may bring.

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