RBA Cash Rate Announcement May 2022

After 138 months, the Reserve Bank of Australia (RBA) has decided to increase the official cash rate by 25 basis points to 0.35 per cent in response to increasing inflation pressures.

The latest inflation data showed Australia had recorded the highest quarterly and annual increase in more than two decades.

The last time the RBA increased interest rates was in November 2010. The official cash rate has been at a record low of 0.1 per cent since November 2020.

Read today’s official statement on the RBA’s website.

Mortgage holders have been warned to prepare for a double rate rise. The cash rate is largely expected to jump by 1 per cent by the end of this year and reach 1.25 per cent next year.

Lenders are likely to lift mortgage rates in line with the cash rate increase, which may result in big changes to variable home loan repayments.

Speak to us about reviewing your home loan to ensure you are getting a competitive offer that suits your financial situation and goals.

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