RBA Interest Rate Update: June 2022
What does today’s rate hike mean for you? We explain the basics with our savvy tips on how to beat the cost of living pressures.
Australia’s official interest rate has increased by 50 basis points to 0.85%. The Reserve Bank followed up last month’s rate hike – the first in over 10 years – with today’s announcement and has flagged higher interest rates are still to come.
Think life is getting more expensive? Well, the data certainly proves it. Annual inflation in Australia has reached 5.1% with events in Ukraine and China contributing to this.
The economy is running hot with the unemployment rate dropping to 3.9% which has helped spur a growth in wages, although salaries are not growing at the same pace as overall inflation – in other words, the average person is falling behind on their take home pay.
Home loan changes
It didn’t take long for the banks to pass on last month’s rate hike to borrowers, so expect more of the same after today’s announcement.
If the interest rate hike is passed on by your bank in full, mortgage holders could expect to pay an extra c. $130 per month on a mortgage of $500,000.
If you want banks to fight for your mortgage, our partner Joust will make the banks compete for your loan through Australia’s only live home loan auction. Check out the Joust Live Auction to see if you can grab yourself a better home loan today.
Financial distress levels
Australia has one of the highest levels of consumer debt in the developed world. This means the average Australian can be more vulnerable in an increasing interest rate environment.
Managing your debts in a rising interest rate climate can be stressful, especially if you’re already behind on repayments and struggling to pay the bare minimum.
We are proud to be partnering with Revive Financial who have been providing personalised relief solutions since 2005. Check out what the team at Revive Financial can do to help you take back control of the situation.
Your credit score
Regardless of global events, you can get a 24/7 pulse check on your credit health with Credit Savvy. Log in to see how your credit score is tracking against others in your postcode or age group.