Official Interest Rate Increase to 3.35%
On February 7, 2023, the Reserve Bank of Australia (RBA) raised the official interest rate to 3.35%, marking the ninth consecutive increase. The RBA remains dedicated to bringing inflation back to its target range of 2% to 3%.
Future Interest Rate Decisions
In deciding on future interest rate increases, the RBA will take into account global economic developments, household spending, inflation and labor market outlooks.
According to a recent poll of economists, the majority expect just one more interest rate increase, with the rate expected to reach a peak of 3.6%.
Fastest Tightening Cycle in a Generation
The RBA's current tightening cycle is the fastest in a generation, having raised the interest rate from a record low of 0.1% to 3.35%.
Rising Interest Rates Impact Homeowner's Monthly Mortgage Repayments
At 3.35 percent, monthly repayments on a 25-year, $500,000 mortgage will have increased by $908 since May 2022, by $1362 for a $750,000 mortgage, and by $1816 for a $1 million loan, according to comparison website RateCity.
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International and top-end buyers of the luxury real estate market tend to be less sensitive to interest rate changes. Let RT Edgar's experienced professionals help you navigate the market with our wealth of knowledge and range of on-market and off-market opportunities if you are thinking of buying or selling. Contact us for the best possible outcome.
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For more information, please click the link below to read RBA lifts cash rate to 3.35pc with more to come in the Australian Financial Review.