The Reserve Bank of Australia (RBA) has announced the tenth consecutive rate rise since May 2022. The Reserve Bank has seen the cash rate target increase by 25 basis points to 3.60%.
In a statement, RBA Governor Phillip Lowe said he expects inflation to be above target rates for “some time”.
“Global inflation remains very high. In headline terms, it is moderating, although services price inflation remains elevated in many economies. It will be some time before inflation is back to target rates. The outlook for the global economy remains subdued, with below average growth expected this year and next,” he said.
Juwai IQI Co-Founder and Group Managing Director Daniel Ho said: “Foreign buyers who finance their purchase in Australia already typically pay a significantly higher rate than domestic buyers, so rate increases can hit them harder. Even so, this rate increase is a surprise to no one. A 0.25% increase might push a monthly principal plus interest mortgage with a balance of $800,000 payment up by $135. But your mortgage only has to fall in value by $10,000 to $20,000 to counteract this increase.”
Read more: The Property Tribune
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