Reserve Bank of Australia (RBA)’s latest Media Release for September has announced an increase in the cash rate target (interest rate) by 50 basis points to 2.35 per cent. This is the fifth month RBA has increased the cash rate.
RBA is committed to returning inflation back towards the 2-3 per cent target range. Increasing interest rates is a means of achieving this goal. It is expected that inflation will peak later this year, and then decline back to the 2-3 per cent target range.
What does this mean for your mortgage repayments?
Check out this repayment calculator to get a rough approximation on how much extra you will be paying for your mortgage repayments. Each bank will differ in mortgage payments, so for an exact amount, speak to your lender.
What are your thought on RBA’s recent cash rate increase?
Do you have questions on why RBA is increasing interest rates?
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Date revised: 07 September 2022