Labeled ‘the safest bet of the day’, the Reserve Banks’ Cup Day increase in the official cash rate by 0.25% came as no surprise. It is the 13th rate rise since May 2022 and takes the official rate to a 12 year high. Lenders are expected to pass on the rise to variable rate home loan borrowers.
The Reserve Bank explained an increase in rates is necessary to reign in Australia’s inflation. “Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago,” Reserve Bank Governor Michele Bullock said in her statement yesterday.
Once again, we urge home borrowers to contact us if they would like to discuss their home loan repayments.