The Reserve Bank of Australia (RBA) increased the cash rate a further 25 basis points to 2.60 per cent, signaling the end of the RBA’s recent run of half percentage-point hikes. Today’s decision is in line with what Reserve Bank Governor Philip Lowe recently told a House of Representatives’ economics committee and follows five consecutive rate increases from May to September. Mr Lowe has warned Australians there are still more interest rate rises to come in the months ahead, with inflation at its highest level since the early 1990s. Factors driving this include upward pressure on prices, an extremely tight labour market and capacity constraints in some sectors of the economy. The RBA still expects inflation to peak later this year, before dropping back to the 2–3 per cent range in 2023. With the US Federal Reserve tightening its monetary policy and raising rates, the pressure is on the RBA to follow suit to stabilise the Australian dollar. It’s important to give your home loan a health check, particularly if you are on a variable rate or a fixed loan that’s ending soon. The lending market is awash with sweeteners to switch loans, so make sure you speak to us to ensure you’ll benefit in the long term if you decide to switch.

For many, investing in the property market is something that they dream of for a long time before making the move. Asking questions like: Where is the best location for an investment property? Should I invest in a house or an apartment? Am I better to buy an existing property or buy new? Is now the right time to invest? These are all very normal questions, in this article we will explain what we are seeing in the current Australian rental market to help you answer some of these questions. The words RENTAL CRISIS are being thrown around a lot lately to describe the rental situation currently facing Australians, but what is causing many industry experts to use these words in describing the current rental market? Put simply there are a lot fewer rental properties on the market and a lot more people looking.

In the RBA’s June meeting, the board added 50 basis points to the 0.35 per cent rate, increasing the cash rate target to 0.85 percent in its second rise in two months. Yesterday marks the first time in over 20 years that the RBA had increased the cash rate target by more than 25 basis points. RBA governor Philip Lowe said inflation in Australia has increased significantly and is expected to increase further, foreshadowing further rate rises in the coming months. “Today’s increase in interest rates by the Board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic,” he said in a statement.