RBA Cash Rate Announcement May 2023

It looks like the Reserve Bank of Australia’s cash rate pause in April was only temporary. Today, the Board decided to increase the cash rate a further quarter of a percentage point to 3.85 per cent.

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

Today’s decision by the Board comes as a surprise to some. Many economists had tipped another pause by the RBA, given the latest inflation figures.

Last Wednesday, the Australian Bureau of Statistics revealed the headline consumer price index for the first quarter of 2023 had come in at an annual rate of 7%.

The number was down from the 32-year high of 7.8% in the December quarter.

Despite the promising inflation figures, RBA Governor Philip Lowe has indicated that the Board would do what was necessary to get inflation back within the target range of 2-3 per cent.

With the cash rate once again on the move and lenders likely to pass the increase on, it’s important to give your home loan a health check.

To talk through your home loan options, get in touch today.

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