Reeling from the last interest rate rise and wondering how much more mortgage pain you can take?
Since the Reserve Bank of Australia began lifting the cash rate in May 2022, there have been eight interest rises. Not like we have to remind you, right?
Interest rates now sit at 3 – 3.35%, with the last rise on February 7.
So why is this happening and when will it end?
The inflation rate of 7 to 8% is being fuelled by all of us spending what we saved during Covid, as well as international factors such as the Ukraine-Russia conflict and some goods like oil and gas becoming harder to get.
RBA governor Dr Philip Lowe is nudging rates up to try to dampen down inflation but when will he put the brakes on?
Economists agree that inflation would need to get right down to two to three per cent, the global economy would need to slow down and push Australia nearer a recession, and unemployment rates would have to increase before we see any relief.
And they’re reasonably confident that we may have to wait until 2024 so, so hold on tight and be prepared to weather out the rest of 2023 on a slightly strained budget.
Or check out our article on savings money and get ahead, despite interest rate rises.