3 Aug 2022
Australian Interest Rates
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The RBA (Reserve Bank of Australia) increased the Cash Rate to 1.85% and again the only good news will be for savers.
This is the fourth time in three decades that the RBA has rapidly increased the Cash Rate and every time asset prices have fallen.
Click for chart.
Yes it is likely that RBA will continue to increase Cash Rate with the expectation that residential mortgage interest rates will double from the current medium 3.0% to 6.0% per annum.
More than doubling in residential mortgage interest rates is very unlikely because the Federal Government cannot afford to financially bankrupt residential mortgage holders who account for around 30% of Australian households.
Now is the time to remain invested according to your appetite for volatility and continue to buy more quality assets at discounted prices.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.