RBA’s Melbourne Cup Day hike shows inflation isn’t going down Without a Fight.

07 November, 2023 / In Finance / By Chris Burnett

Melbourne Cup Day isn’t Melbourne Cup Day without an RBA decision and today borrowers aren’t the ones celebrating a win. As horse ‘Without a Fight’ was running first past the post, the RBA’s decision was announced to increase the cash rate by 25 basis points – taking the rate to 4.35%. Last time it was this high was when Julia Gillard was PM -12 years ago!

It’s the RBA’s first increase under the board’s new jockey RBA governor Michelle Bullock, who made it clear last month that she would not hesitate to raise the cash rate if inflation persisted.

Whilst inflation dipped from the June 2023 quarter’s rate of 6%, inflation for the September 2023 quarter remained persistent at 5.4% (more than what was expected a few months ago by the board and more than the 2-3% range we need to be at). It was these figures that already had the experts putting the odds on a hike in today’s RBA decision.

What does this decision mean for you? Depending on how your loan is structured, it is likely that this 0.25 increased will be passed on by your bank/lender over the coming weeks.

We are recommending that our clients to get on the front foot of this rate rise and contact us if they would like a complimentary review to see how a refinance might be able to mitigate the pending raise in your home loan rate.

Book in a phone call with Chris via our website to arrange a complementary review or email us at admin@opulento.com.au.