The Board has decided to keep the cash rate target steady at 4.35%. Inflation, while lower than its 2022 peak, is still high. Over the year to September, headline inflation fell to 2.8%, largely due to decreases in fuel and electricity costs. Underlying inflation, however, stands at 3.5%, above the 2.5% midpoint target, with sustainable levels not expected until 2026. Economic growth remains weak, with tight financial conditions and reduced real disposable incomes limiting household spending. Aggregate consumer demand, including spending by temporary residents, remains resilient, but underlying inflation persists due to demand outpacing supply. Labour market conditions remain tight… Read more
Tag: Commonwealth Bank NAB ANZ Westpac Rate Cut
Interest Up 0.50% Again to 1.35%
The Reserve Bank of Australia has increased interest rates by 0.50% again for the second month in a row bring the cash rate to 1.35%. The RBA cited a number of events that are contributing to inflation and these include COVID-19, global supply chain issues, the Ukraine / Russia war and the floods are also affecting some prices. All the major banks and many other lenders were quick to announce and pass on the interest rate increase. Along with the variable interest rate rise many lenders are increasing fixed rates at a surprising rapid rate. We have seen an increase… Read more
April 2022 Interest Rates Remain At 0.10%
The RBA has remained consistent in wanting to see a sustained period with inflation in their 2-3% target range and steady wages growth before raising the cash rate. With global uncertainties remaining and modest wage growth, expect the Reserve Bank to continue to closely monitor supply chain disruptions, increasing energy prices and global events. The RBA has committed to patience in determining when inflation is sustainably at target. LENDER LOAN TYPE SECURITY TYPE INTEREST RATE MAX LVR Bank Variable Residential Security 1.96% CPR 1.96% 80% Enquire Bank Offset Account Residential Security 1.96% CPR 1.96% 80% Enquire Bank Variable… Read more
Fixed Rate Mortgage Exit Fees
Many borrowers may find that it very difficult to get away from their fixed rate loans as the costs may be too expensive. As we are seeing significant decreases in mortgage rates over the last 6 months many mortgagors with fixed rate loans are contemplating switching to a variable rate mortgage. So what are the costs involved? The main cost is known as “break costs”. This is the cost of breaking your fixed mortgage early. The actual cost of breaking a fixed rate mortgage varies significantly. The calculation of the actual cost depends on the following factors; 1.The interest rate… Read more