RBA Increases Interest Rates After October Meeting
- Posted By Ayla Miels
As expected, the RBA once again increased the cash rate. This October meeting, they increased the cash rate by 25 basis points. Increasing from the emergency rare of 0.1% in May to 2.6%. It could take between 18 to 24 months to feel the full impact of the rate rises we’ve seen over the past few months.
Although many households are already under severe pressure, the combination of rate rises, the rise of inflation, and declining wages are pushing households to the edge.
It is expected the rates will continue to rise over the coming months. Although this month’s rate rise was smaller than the previous months, the RBA will continue to do what is necessary to bring inflation down to an acceptable rate.
It is hard to predict what may happen in the coming months as the RBA surprised everyone by deviating from their consistent raising of 50 points.
The rate rises since May had a ripple effect on the housing market, with buyer confidence decreasing and housing prices dropping also.