Despite a rate freeze last month, consumers are still coming to terms with the 11 consecutive rate rises between May 2022 and March 2023. Core reasoning for this months decision is no surprise; the RBA has a goal to return inflation to a certain percentage.
In today’s announcement, RBA Governor Philip Lowe confirmed that they are going to continue to make the necessary decisions in order to return inflation to between 2-3 percent. Australia’s inflation currently sits at 7 percent, with January 2022 being the last recorded month that began with a 3.
Households and businesses continue their long-term trek on a difficult road, as they adjust to what feels like a constant increase in cost of living. The RBA continues to support their decisions by confirming their faith in the strength of the Australian economy.
Their constant monitoring of unemployment rates, housing prices and unit labour costs cements the past 12 months of the increasing cash rate (disregarding April ’23).
More investors, first home buyers and business owners are consulting industry professionals to plan their future financial decisions. With a relatively predictable outlook for our finance and economy for the next 12 months, brokers can have informed discussions to ensure their customers have a reliable plan in place.
It’s never been a better time to ensure your financial commitments are anchored with the most competitive rates, offers, fees and terms. Refinancing has become more frequent in the past 12 months as consumers learn the features and benefits of a more frequent home loan health check. A 10 minute phone call could save you thousands.