Melbourne's Best Independent Mortgage Broker - available 7 days a week

RBA Increases Interest Rates November 2023

RBA Increases Interest Rates November 2023

Share This Post

Interest Rates November Announcement

In an effort to combat persistent inflation, the Reserve Bank board has raised interest rates from 4.1 per cent to 4.35 per cent, placing further strain on mortgage holders.

This latest hike will increase the monthly interest bill on a $750,000 home loan by $114, resulting in a total increase of $1815 per month since the RBA began raising rates in May. Homeowners with mortgages of this size will now have to find an extra $22,000 annually in their already tight budgets.

Rising in Interest rates

After holding off on rate hikes for four months to gather more information on how the previous increases affected growth, inflation, jobs, and spending, the RBA decided to move forward with the widely anticipated decision. This comes after a series of economic data suggested that the Australian economy remained resilient to the twelve previous hikes, including a near-record low unemployment rate of 3.5 per cent.

A hot consumer price report for the September quarter, along with a surprise surge in retail spending, made it almost inevitable that the RBA would make its thirteenth rate hike. Moreover, the 10 per cent surge in property prices since February demonstrated that monetary policy was not sufficiently tight, further underlining the necessity for this latest rate increase.

What The RBA Said

RBA Governor Michele Bullock said:

“Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago. The latest reading on CPI inflation indicates that while goods price inflation has eased further, the prices of many services are continuing to rise briskly. While the central forecast is for CPI inflation to continue to decline, progress looks to be slower than earlier expected. CPI inflation is now expected to be around 3½ per cent by the end of 2024 and at the top of the target range of 2 to 3 per cent by the end of 2025. The Board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable timeframe.”

How Your Mortgage Broker Can Help

Home Interest rates

Mortgage Broker What If We Finance remains committed to helping customers minimise their interest costs and reduce the impact of rising interest rates.

As Melbourne’s leading independent mortgage broker, we have access to over 42 lenders and over 2000 home loan products. There is no time like now for a home loan health check to see if your mortgage still meets your needs.

Contact mortgage broker Melbourne What If We Finance for it to find an unbeatable home loan deal today.

Get updates and learn from the best

Subscribe To Our Newsletter