RBA UPDATE – November 2022
RBA UPDATE | Effective November 1, 2022
For the seventh consecutive month, the Reserve Bank of Australia (RBA) has made the decision to increase the nation’s official cash rate, which now sits at 2.85%. With the 25-basis-point (bp) increase, Australians are experiencing the highest cash rate in nine years
A number of major banks expect the figure to rise further to 4.00% by May 2023.
The RBA is utilising the cash rate increases as a way to try to reduce inflation to the RBA’s preferred position of 2 – 3%. The Consumer Price Index (CPI) rose 7.3% over the 12 months to the September quarter.
As most banks and other lenders will likely follow the RBA and lift their rates too, again increasing mortgage repayments, it could be a good time for homeowners to consider contacting their mortgage broker for a ‘home loan health check’.