RBA Cash Rate Announcement December 2022

The Reserve Bank of Australia (RBA) increased the cash rate a further 25 basis points to 3.10 per cent, its third quarter-point rate hike in as many months which sees the cash rate reach a new ten-year high.

Read the official statement on the RBA’s website.

Today’s decision follows seven consecutive rate increases from May to November and a stunning apology from Reserve Bank Governor Philip Lowe to Aussies who took out a mortgage after advice from the RBA.

The RBA boss stated consumers could be in for a wild ride with supply shocks expected to continue to impact the cost of living for years to come.

Australia’s inflation rate is expected to peak at 8 per cent by the end of the year. Domestically, the economy continues to grow but that growth is expected to moderate next year as household consumption slows due to tighter financial conditions.

Mortgage holders are amongst the groups currently experiencing large increases in their living costs. If you’re facing financial hardship or struggling with your mortgage repayments, the earlier you get help, the more options you will have. We’re ready to assist, so please don’t hesitate to get in touch today.

But in some good news for homeowners, a new report predicts property values to rise next year if the RBA pauses its run of rate hikes and inflation is brought under control.

Need help understanding what this announcement means for you? Contact us today!