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.
The Reserve Bank has given homeowners a reprieve, pausing on interest rates for the first time in 10 months.
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.
The Reserve Bank again lifted the official cash rate this week and it has prompted calls for the home loan serviceability buffer to be reduced.
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.
The Reserve Bank has lifted rates again, this month by 0.5 of a percentage point, making this period the hardest it has gone at rates since 1994.
It’s another big hit for borrowers, who can expect to pay almost $300 a month extra on a $1 million mortgage.
The Reserve Bank has lifted the official cash rate another 0.5 percentage points this month, taking it to 1.85 per cent.
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.