The Reserve Bank of Australia (RBA) has announced a 25 basis point increase to the cash rate during the November Monetary Policy Board Meeting. The cash rate is currently 4.85%. This move was widely anticipated by economists and predicted by the major banks, reflecting ongoing concerns about high inflation. Recent data from the Australian Bureau of Statistics (ABS) showed that the headline Consumer Price Index (CPI) climbed by 4.3% in the 12 months leading up to September. Furthermore, the trimmed mean inflation rate rose by 1% in the September quarter, bringing it to 3.7%. These elevated inflation levels continue to exceed the RBA's target range of 2-3%.
What do cash rate changes mean for you?
The recent decision to increase the cash rate may result in changes to your existing home loan rates. Your bank will directly notify you of any adjustments to your rate. This change presents an ideal opportunity to assess your financial situation and evaluate whether you are optimising the best options available to you.
Email us today to arrange a review with one of our experienced team members at enquiry@wma.net.au
The Reserve Bank of Australia’s next schedule meeting
Looking ahead, the next meeting is December 7th –8th, where further monetary policy decisions will be discussed.