Interest rates Australia

2022 - 7 - 4

Post cover — Image courtesy of "The Guardian"

Homeowners warned to expect at least two further rate hikes as ... (The Guardian)

Markets and economists are tipping a 50 basis point increase when the Reserve Bank meets on Tuesday, lifting the official cash rate from 0.85% to 1.35%, with ...

Westpac’s economics team has forecast the cash rate will increase to 2.35% by the end of this year and hit 2.60% by early 2023. If July’s rate rise is smaller than expected – for example, at 0.25% – the cumulative effect of the last three rate rises would be $264 for a $500,000 loan. The RBA has responded by lifting the cash rate from the emergency levels of 0.1% set in November 2020, with a flurry of rate rises during election season in May, again in June and another expected on Tuesday. The RBA will then be guided by global developments and the inflation outlook, including the June quarter inflation result out at the end of July, he said. According to interest rate comparison service RateCity, the May and June rises and a further 0.5% increase in July will lift the monthly repayments on a $500,000 loan by $333. Markets and economists are tipping a 50 basis point increase when the Reserve Bank meets on Tuesday, lifting the official cash rate from 0.85% to 1.35%, with further rises expected throughout 2022.

Why are interest rates going up? What does inflation have to do with ... (ABC News)

You've probably heard the Reserve Bank is likely to increase official interest rates when it meets again this afternoon.

"It's slow and takes a lot of effort to be precise. "The average person is going to have a difficult year ahead." There's a risk you go too hard and too fast and hit the iceberg. And the iceberg is a recession," she said. "Using interest rates is a bit like steering the Titanic," said Ms Hutley. - The official interest rate is going up to curb inflation

RBA cash rate decision Tuesday: How much will the reserve bank ... (7NEWS.com.au)

Mortgage holders are expected to be dealt a sizable blow when the RBA hands down its rates decision on Tuesday.

Westpac’s fixed rates are now well below the other big four banks’ rates, however, they’re unlikely to last long.” “CBA and NAB are not hiking in isolation. Someone with a $1 million mortgage would pay $265 more per month. Someone with a $750,000 mortgage would pay $199 more per month. Someone with a $600,000 mortgage would pay $159 more per month. According to home loan rate change calculator Mozo, someone with a $500,000 mortgage would pay $133 more per month if the variable rate changes from 3.11 per cent to 3.61 per cent.

$200 blow: What rate rise would mean (NEWS.com.au)

With the Reserve Bank of Australia (RBA) expected to continue increasing the national interest rate, expert economists are worried a recession may be on the ...

The major question is whether the official cash rate will rise to 1.1 or 1.35. Stream more finance news live & on demand with Flash. 25+ news channels in 1 place. “So while we’ll see an 0.5 per cent hike in July, the interest rate and inflation rate will slow down such that by the end of this year we’ll only see a cash rate rise of 2.1 per cent and ultimately a peak of 2.5 per cent by the end of the first half of next year,” he said. New to Flash? Try 1 month free. The larger increase would add more than $200. Dr Oliver said the cash rate was expected to continue to trend upwards for the rest of this year, but the rate of increase will likely be “slower” as the RBA seeks to balance the rise to cost of living pressures.

Mortgage borrowers brace for more pain as RBA rate hike looms (9News)

It's widely expected that the Reserve Bank of Australia (RBA) will lift rates by up to 50 basis points at 2...

"If the outlook for wage rises is too far off, the increase in living expenses and loan repayments will hit a crisis level, in particular for recent borrowers." "Hopefully the one in five who plan to run up their credit card debt will be able to get on top of it when wage rises finally start to catch up, as the Reserve Bank expects. According to Westpac's latest forecast, the cash rate could increase to 2.35 per cent by the end of 2022 and hit 2.60 per cent by early next year. "The government is doing what it can but really the only solution to this in the medium term is to try and build a budget and an economy which is as resilient as the Australian people themselves, and that's what we're working on." "Governor Lowe might have poured cold water on suggestions the cash rate could get to 4 per cent by Christmas, but the RBA is still likely to rip the band-aid off quickly." "This would be a bold move by the Reserve Bank but not at odds with action other central banks are taking to rein in inflation.

Goldman Says Australians Can Handle Higher Interest Rates (Bloomberg)

Australian households can sustain materially higher interest rates this year as their net debt has sharply sunk since the global financial crisis, ...