{"id":1674,"date":"2022-06-07T16:23:27","date_gmt":"2022-06-07T06:23:27","guid":{"rendered":"https:\/\/finance4nurses.com.au\/?p=1674"},"modified":"2022-06-07T16:23:27","modified_gmt":"2022-06-07T06:23:27","slug":"rba-increases-cash-rate-for-second-consecutive-month-to-0-85","status":"publish","type":"post","link":"https:\/\/finance4nurses.com.au\/rba-increases-cash-rate-for-second-consecutive-month-to-0-85\/","title":{"rendered":"RBA increases cash rate for second consecutive month, to 0.85%"},"content":{"rendered":"

The Reserve Bank of Australia (RBA) has increased the official cash rate by 50 basis points to 0.85%. How much extra should you expect to pay on your home loan?<\/strong><\/p>\n

Today\u2019s cash rate hike is the second in as many months, with the RBA last month increasing the official cash rate from a record-low 0.10% to 0.35% amid high inflation concerns.<\/p>\n

Before then, we hadn\u2019t had a cash rate hike since November 2010.<\/p>\n

Now usually, the RBA increases or decreases the cash rate by 0.25%.<\/p>\n

However, today\u2019s larger than expected 0.50% cash rate hike is due to inflation in Australia having \u201cincreased significantly\u201d, said RBA Governor Philip Lowe in a\u00a0statement<\/a>.<\/p>\n

\u201cGiven the current inflation pressures in the economy, and the still very low level of interest rates, the Board decided to move by 50 basis points today,\u201d said Governor Lowe.<\/p>\n

\u201cHigher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago.\u201d<\/p>\n

How much more will your mortgage cost each month?<\/h3>\n

Unless you\u2019re on a fixed-rate mortgage, it\u2019s extremely likely the banks will follow the RBA\u2019s lead and increase the interest rate on your home loan very soon.<\/p>\n

How much your repayments will go up each month depends on a number of factors, including how your particular bank responds to the cash rate increase and the size of your mortgage.<\/p>\n

But let\u2019s say you\u2019re an owner-occupier with a 25-year loan of $500,000 (paying principal and interest).<\/p>\n

This month\u2019s 50 basis point increase to 0.85% means your monthly repayments could increase by about $133 a month.<\/p>\n

If you have a loan of $750,0000, repayments will likely increase by about $200 a month, and a $1 million loan is expected to cost an extra $265 a month.<\/p>\n

If you\u2019re worried about your monthly repayments, get in touch<\/h3>\n

It\u2019s very likely that we\u2019ll see more RBA cash rate hikes before the year is out.<\/p>\n

In fact, the RBA has basically said as much.<\/p>\n

So if you\u2019re worried about what interest rate rises might mean for your monthly budget, feel free to get in touch with us today to explore some options.<\/p>\n

This could include refinancing or locking in a fixed rate ahead of any other future rate hikes.<\/p>\n

Disclaimer:<\/strong>\u00a0The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Reserve Bank of Australia (RBA) has increased the official cash rate by 50 basis points to 0.85%. How much extra should you expect to pay on your home loan? Today\u2019s cash rate hike is the second in as many months, with the RBA last month increasing the official cash rate from a record-low 0.10% […]<\/p>\n","protected":false},"author":2,"featured_media":1675,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[9],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/posts\/1674"}],"collection":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/comments?post=1674"}],"version-history":[{"count":0,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/posts\/1674\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/media\/1675"}],"wp:attachment":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/media?parent=1674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/categories?post=1674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/tags?post=1674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}