Homeowners struggling with rising mortgage repayments will no doubt be welcoming today’s news.
“The combination of higher interest rates and cost-of-living pressures is leading to a substantial slowing in household spending,” RBA governor Philip Lowe said in a recent statement.
“While housing prices are rising again and some households have substantial savings buffers, others are experiencing a painful squeeze on their finances.”
The RBA has been in the headlines recently, with Michele Bullock set to take over as governor when Philip Lowe’s term expires on September 17.
From February 2024, the RBA will undergo significant changes. The number of board meetings to decide on changes to the cash rate will be cut to eight meetings instead of 11 and post-meeting press conferences will commence for greater transparency.
The creation of separate boards for interest rate setting and governance was another key recommendation of the independent review.
With so many changes looming, it’s a good idea to review your home loan, especially if it’s been a while.
If you’re dreading feeling the full force of the RBA’s interest rate rises, we can help you look for a competitive loan.
To talk through your options, get in touch today.