On the 5th of December the RBA Board decided to leave the cash target rate unchanged at 4.35%
In the statement by RBA Governor, Michele Bullock it was noted that holding the rate steady would allow more time to assess the impact of earlier increases.
“Higher interest rates are working to establish a more sustainable balance between aggregate supply and demand in the economy. The impact of the more recent rate rises, including last month’s, will continue to flow through the economy. High inflation is weighing on people’s real incomes and household consumption growth is weak, as is dwelling investment. Holding the cash rate steady at this meeting will allow time to assess the impact of the increases in interest rates on demand, inflation and the labour market.”
The next interest rate decision from the RBA Board will be released on the 6th of February.
Considerable uncertainty persists around the outlook for the Australian economy due to domestic and international factors. The RBA have been very clear that they are focussed on bringing inflation in-line with target and will raise rates further where they feel necessary.
With higher interest rates likely to persist for some time, it is important to review your loans to ensure that you are getting a good deal.
Our in-house broker Kevin Mortimer is here to help. If you would like Kevin to review your loans, get in touch.
Sky Accountants Ballarat
Phone: 03 5332 8855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 5428 1400
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437