Rising house prices, rents and a twitchy inflation rate had some pundits predicting the Reserve Bank would lift rates again in October, but new governor
Fresh off the news the Reserve Bank will cut the number of its yearly meetings from 11 down to 8, they have also announced they will not be renewing the contract of governor Philip Lowe.
Homeowners will see less interest rate announcements each year in the biggest Reserve Bank shake-up we’ve seen in years.
Governor Philip Lowe however was quick to make it clear the pause in rate hikes doesn’t definitely signal the end of the current phase of rate rises.
It comes after big lender Westpac warned that a good portion of its home loans will soon exceed the upper limit of the serviceability buffer they were written against.
Mortgage holders are being confronted with the highest interest rates in over 10 years after the Reserve Bank hiked the official cash rate another 0.25 per cent this week.
The Reserve Bank lifted the official cash rate again this month
Prior to the latest few rounds of interest rate hikes, commercial property loans in Australia actually hit a record high, increasing by 12.8 per cent in the 12 months to June of this year.
It’s another big hit for borrowers, who can expect to pay almost $300 a month extra on a $1 million mortgage.
Higher interest rates are taking the appetite from property buyers and it means falling house prices, but at the same banks are winding back how much people can borrow.
