The Reserve Bank of Australia has lifted the official cash rate for the seventh consecutive month, as it perseveres with its fight to bring down inflation.
At its meeting on Tuesday, the RBA board decided to increase the official cash rate by 25-basis points from 2.60% to 2.85% and the interest rate on exchange settlement balances to 2.75%.
This is the seventh consecutive rate increase in 2022 as the RBA has consistently pushed up the OCR from a record low 0.10% in April to sit at 2.85% following its November 1 board meeting.
On October 26, annual inflation rose 1.8 % to sit at 7.3% – a big increase from what experts had predicted. The annual CPI jump is the biggest for three decades, where the last time it was this high was in 1990 when it hit 7.7%.
“A further increase in inflation is expected over the months ahead, with inflation now forecast to peak at around 8 per cent later this year. Inflation is then expected to decline next year due to the ongoing resolution of global supply-side problems, recent declines in some commodity prices and slower growth in demand,” Lowe said.
RBA governor Philip Lowe said as was the case in most countries, inflation in Australia is too high.
Just how high the cash rate would go at the end of the year remains a key source of uncertainty for the market.
However, there’s no need for panic, if you have a variable mortgage and are expecting the repayments to increase there are actions you can take to minimise the effect of the increase
Want tips on how you can beat the rising rate?
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Currently the interest rates have shifted significantly high, we would be delighted to provide you with current interest rates that are competitive in the market or provide better rate for your existing home loan, as well as more options for refinancing with cash rebates.
You will be always been an important client to Archer Mortgage Group, and we’re here to make sure you’re always on the right track and provided with the best possible advice. We’re here to help you every step of the way, so you can achieve all your financial goals. “
If you need any further information or help with your current home loans or enquiries, please do not hesitate to contact us.
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