Interest rates Australia: The Reserve Bank of Australia (RBA) indicated it would inflict pre-Christmas pain on mortgage holders with a further rise

The Reserve Bank of Australia is expected to inflict more pain on mortgageholders with another rate hike… but a pause has not been ruled out.

The RBA has been raising interest rates since May to counter rising inflation, with a further 25 basis point hike to bring the policy rate to 3.1 percent.

WATCH THE VIDEO ABOVE: New reports show the impact of Philip Lowe’s claims that cash prices would not rise until 2024.

Watch the latest news on Channel 7 or stream for free on 7plus >>

At the board meeting on Tuesday, economists from all four major banks are expecting a further increase in key interest rates.

While the central bank is widely leaning towards raising interest rates, Governor Philip Lowe has left his options open ahead of his December board meeting.

St. George economist Besa Deda said a rate hike is not a done deal, and senior RBA officials have repeatedly pointed out how long it will take for rate hikes to penetrate the economy.

Deda said a pause was possible on Tuesday, with early signs of a slowdown in spending and easing inflation in recent data declines.

On the other hand, the unemployment rate remains at record lows and the central bank misses the chance to move rates next month as it does not meet in January.

But if the bank delivers another 25 basis point hike, mortgageholders with adjustable-rate loans will suffer another increase in their monthly repayments.

Figures compiled by RateCity show that repayments have increased by $1,251 since May for the average $750,000 loan with a remaining term of 25 years.

RateCity Research Director Sally Tindall said people should prepare for another hike in interest rates next year.

“If you can’t afford those higher repayments, examine your budget to see where you can make cuts,” she said.

https://7news.com.au/business/interest-rates/rba-tipped-to-inflict-pre-christmas-pain-with-yet-another-rate-rise-c-9070736 Interest rates Australia: The Reserve Bank of Australia (RBA) indicated it would inflict pre-Christmas pain on mortgage holders with a further rise

James Brien

24ssports is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@24ssports.com. The content will be deleted within 24 hours.

Related Articles

Back to top button