RBA lifts cash rate by 25 basis points to 3.6%.
With an aim to tackle inflation, the Reserve Bank of Australia has again for the 10th consecutive time, increased the cash rate, delivering further stress to many Aussie households.
Although the RBA previously stated that the precipice is not far away, the most recent increase has the current cash rate sitting at the highest level since mid-2012.
“The board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary,”
– RBA governor, Philip Lowe
The RBA states that during assessment of when and how much further interest rates need to increase, they will be keeping a close eye on developments within the global economy, data and trends in household spending and the outlook for inflation and the labour market.
If commercial banks pass these hikes on entirely, the cost of additional repayments on an average $500,000 mortgage will have skyrocketed by around $1,000 per month since May of last year.
Is your home loan in need of a health-check? To avoid paying more than you need to, consider exploring your refinancing options to find out if you can save thousands in the long-term. Get in touch with our expert brokers and we’ll help determine if you’re in a good position to get a sharper rate on your loan.
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