December Rate Announcement !!
- Abbey Reggardo
- Dec 5, 2023
- 2 min read
Australia’s borrowers have been spared a Pre-Christmas interest rate rise with the Reserve Bank remaining on hold at its final board meeting of 2023.
The RBA left its cash rate at 4.35% on Tuesday, a move widely expected by financial markets and economists after the inflation rate resumed its slowdown in October to 4.9% and the jobless rate ticked higher.
The central bank lifted the cash rate by 25 basis points in November to a 12-year high, stating it wanted to ensure inflation continued to ease towards its target range of 2%-3% by the end of 2025.
“Returning inflation to target within a reasonable timeframe remains the board’s priority,”
RBA governor Michele Bullock said in an accompanying statement. “Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks.”
We actually don’t agree with her statement at all, and we feel your pain. Further tightening monetary policy where clients cannot afford the debt they currently have is just wrong, let alone further rate hikes in the new year.
Let’s hope she reassess her opinion over her summer break.
Unfortunately we are already seeing clients not be able to meet servicing benchmarks for new loans and are struggling to afford to refinance on their current debt. Its a tough climate for borrowers and as mortgage brokers we really do feel your pain.
Leading up to the Christmas break it’s now time to review your finances. Whether it’s with your existing bank or elsewhere it’s a chance to save you on your repayment each month.
Cash flow is king, especially leading into the Christmas period !
We’ve been able to get better pricing on existing loans, if not get a better deal elsewhere.
There are banks offering cashback incentives and are happy to consolidate your personal or car loans into the mortgage as well.
Send us a DM or hit the link below and we can send you an invite and lock in a time for a quick chat. The chat will take as little 5 minutes and could save you thousands !!
Comments