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RBA Rate Rise For November 2022

RBA rate rise November

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As expected, the Reserve Bank of Australia has increased interest rates by 0.25% to 3.10%. This is one of the most aggressive interest rate tightening cycles in living memory, and the case rate is at its highest level in 10 years.

RBA governor Philip Lowe said the bank’s board decided to raise interest rates by a quarter of a percentage point to 3.1% as it works to bring inflation under control.

“Inflation in Australia is too high, at 6.9% over the year to October. Global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role,” he said.

Inflation is expected to increase in the months ahead to 8% and is expected to decline in 2023 as supply-side problems are resolved, and declines in commodity prices and slower growth in consumer demand begin to impact the economy.

The RBA expects inflation to decline to approx. 3% in 2024.

Will Interest Rates Fall?

Will Interest Rates Fall

Independent Mortgage Broker What If We Finance surveyed the major banks, and forecasts are as follows:

  • CBA: 3.10% by December 2022, then dropping to 2.60% by December 2023
  • Westpac: 3.85% by May 2023, then dropping to 2.85% by November 2024
  • NAB: 3.60% by March 2023, remaining steady into 2024
  • ANZ: 3.85% by May 2023, then dropping to 3.50% by November 2024

As you can see, interest rate expectations vary amongst lenders, but the consensus seems to be sometime in the next 12 months; we can expect to see interest rate cuts in the next 12 months.

However, expectations can change, so we should not treat the above forecasts as gospel.

Whatever happens, working with your mortgage broker is a wise strategy to ensure you are getting the best possible deal. Contact What If We Finance today for an unbeatable deal. If you have any questions regarding our services, check our mortgage faq.

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