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Already got a message from NAB yesterday that our mortgage repayments are going up yet again, so unless they're backtracking on that after today's decision, I feel like many people are in fact not breathing a sigh of relief.
Some banks aren’t passing on rate rises immediately; it could be that NAB is incorporating a previous cash rate rise into your new interest rate.
The flow on effects of previous rises might take a bit longer to be fully seen, but I daresay they are going to do another rise or two before the year is out. It does also depend on the situation around the world to some degree as well.
Yeah I literally got my monthly letter from the bank today letting me know my eye watering monthly repayment for my modest suburban house is going up another $200 a month.
So, yay for paused interest rates but they could have at least let me enjoy it for a day or two.
Yeah it is eye watering to look at what our minimum payments were 18 months ago, compared to now :-\
My primary residence mortgage is fixed until the end of the year, so I'm not looking forward to seeing how much the repayment jumps. It'll be going from 1.9% to ~6% most likely :(
Yep, good luck. Expect thousands (plural). You must have locked in the fixed term at the perfect time.
Honestly surprised about the decision. I guess the economy overall is slowing down a bit more than expected. They gotta get inflation down though it's simply too high.
Glad that they paused and quietly hopeful that the top is in. I suspect there might be one or two more rises in there though.
Power increases will start to impact the next monthly CPI figures and unemployment is still low, but there's still a good few people coming off low fixed rates so it's hard to know how much the prior increases have made an impact through the economy.
The real question is how long they'll stay around this rate before dropping. The RBA have a bit of a history of overcorrecting so it could be sooner than people think.
I don't know. I think they have been behind the curve all the way. Inflation is dropping and the economy is showing signs of creaking. I think if they went harder earlier, we'd already be better off. The same logic makes me wonder if a small increase now will prevent 2 in the not too distant future.
I think they should be talking about government not using their levers more, though. It means there will be mounting pressure to end stage 3 tax cuts, which would be inflationary. Labor are only keeping them as they didn't and don't want to be wedged.
They should be cutting the spending where it's happening. The wealthy and the older generation. Instead the RBA only has the means to disproportionately affect the young who are more indebted than ever historically.
And yet today my landlord has told me that they are raising my rent 20%
Same, bud. Mine went up 20%. Waiting with bated breath to hear if my wage has gone up 20% as well. Lol.
I’m happy that they haven’t moved this month but disheartened that they’re considering further rises. Inflation has really started ticking back down and while it’s not back in the ‘goldilocks’ zone yet things are definitely easing. They really need to wait and see what the mortgage cliff towards the end of the year will do to the market before moving up anymore as they could be directly responsible for pushing us into recession.
@Instigate @Mountaineer they really need the federal government to get off their collective arses and do something instead of hiding behind the RBA and the blunt cash rate stick.
Shit like Air-BNB eating into housing stock, corporations passing on rate rises wholesale to ensure record profits, or even reneging on the tax cut promise.
But the government is happy for Philip Lowe and the RBA to cop the brunt of it (some of it is deserved, admittedly)
It’s rare for inflation to be tamed without a recession, so we will wait and see. Setting the goal at 2 - 3% by 2025 hurts everyone as inflation stays above the range longer.
Moving hard to bring it down sooner hurts a few who borrowed too much for a place they can’t afford, yet helps everyone else as lower inflation benefits all of us. The RBA is playing it too safe imo and hoping for this narrow path which seems unlikely.
It would be sensible to pull up a chart of the historical interest rates and expect the real possibility that interest rates could remain around the 5% range for 10-20 years, as they did in the 1990s and 2000s when inflation was in the 2-3% target range.
https://tradingeconomics.com/australia/interest-rate