For the second month in a row, the Reserve Bank of Australia (RBA) has increased the official cash rate, this time by a further 50 basis points to 0.85 per cent, as it tries to curb inflation.
Read today’s official statement on the RBA’s website.
Most people were asking ‘how high’ not ‘if’ the RBA would increase the cash rate this month, so today’s decision is no surprise. The 0.5 percentage point jump is the largest one month lift since the RBA pushed up rates by half a percentage point in early 2000.
The back to back rate rise is likely to have a significant impact on many mortgage holders, who may already be struggling with rising cost of living pressures.
If you wish to discuss your options, rest assured we are here to assist. We can talk through your options and make sure you’re getting a competitive offer that suits your specific financial situation and goals.
Meanwhile, there have been other changes recently that could affect new borrowers. Some lenders have cut their debt-to-income (DTI) ratio limits, thereby tightening home lending rules amid expectations of more interest rate rises.
Chat to your Fornaro team to understand how these changes may impact you.