Reserve Bank Australia (RBA) March Monetary Policy Meeting.

RBA Board, during its Monetary Policy meeting today decided to increase the cash rate target by 25 basis points to 3.60 per cent. This is the tenth consecutive increase since May 2022

The Reserve Bank of Australia (RBA) met on the 8th of February 2023 to determine the Cash Rate for unsecured overnight loans for banks, which impacts the interest rates passed onto the mortgage home loans for Australians.

Interest rates - Interesting Times

Earlier in the year we wrote about the effect that interest rates has on the ability to borrow funds.

Effectively, as interest rates rise, the amount you can borrow reduces. Broadly, a 1% interest rate rise reduces your ability to borrow by 10% (of total debt), eg if you could borrow $1mil and rates rise 1%, then you can now only borrow $900,000.

Interest Rate 2022 -2023 Outlook.

The 3rd May 2022 will it go down as a momentous day in the financial history of Australia. The weekend news was littered with the opinion of doom and gloom (relating to interest rate rises) and the effect of what interest rate rises will have on the economy.

Should I Fix my interest rate?

Back in Quarter 3 2021, the Reserve Bank of Australia (RBA)  announced that we could see an interest rate increase at some point in 2022, previously they had suggested no changes until 2024. Since then we still have not seen the Reserve Bank make any changes to interest rates, but we have seen banks increase their fixed rates, some three times during the last six months.