RBA Cash Rate Announcement September 2023

The Reserve Bank of Australia (RBA) has again left the cash rate on hold this month at 4.10 per cent.

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

That’s three months in a row that the RBA has left the cash rate on hold, giving homeowners a chance to breathe.

The decision comes as a growing number of Australians face mortgage stress and home loan defaults while grappling with the cost-of-living crisis.

New data by Roy Morgan shows 1.5 million Australians, or 29 per cent of borrowers, were at risk of mortgage stress in the three months to July, a number higher than during the 2008 global financial crisis.

And according to an expert, the peak in mortgage arrears is yet to hit.

S&P Global Ratings analyst Erin Kitson said while the percentage of households missing mortgage repayments was low, it was a lagging indicator.

"We certainly expect arrears to continue to rise and in terms of how long and so forth, ultimately that will depend on where interest rates head and where they finally peak. At this point we expect arrears to continue to increase into the first half of next year," Ms Kitson said.

It will be interesting to see what the RBA does in the coming months when Michele Bullock takes over as governor from September 18.

When Philip Lowe was appointed as governor in September 2016, he didn’t change the cash rate for 29 months.

Some have speculated Ms Bullock may keep rates on hold as she focuses on the RBA overhaul in response to the recent review of the central bank. Others have suggested the RBA may begin cutting the cash rate within 12 months.

If you’re overdue for a home loan health check, don’t procrastinate. Get in touch today and we’ll advise you about whether your current home loan best suits your needs.

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