MoneyQuest’s December Cash Rate Update – A Re-cap and Another Rise

Seeing as though the end of the year is near and there’s a bit of festive cheer in the air, we decided to make this month’s cash rate video a little bit more light-hearted by giving it a musical theme and re-capping cash rate decisions gone by.

Unfortunately, the Reserve Bank of Australia (RBA) Board has not helped to keep the mood light, nor has their December cash rate decision been music to our ears.

It was announced today that the cash rate has been increased yet again, this time by 25 basis points, making the official cash rate 3.10%.

This hike is significant for two reasons:

1. It marks the eighth cash rate increase in a row

2. It has occurred in the month of December

Historically, the RBA Board has rarely increased the cash rate in December, with the two most recent December cash rate rises occurring in 2009 and 2003. This unusual (yet not all that surprising) decision emphasises just how determined the central bank is to return inflation to target as quickly as possible.

So, if you’re feeling a little concerned about how another interest rate rise may impact your ability to make your mortgage repayments, especially given that many of us are spending more than usual due to the holiday season, why not reach out to our team of mortgage brokers for some guidance and reassurance. They can discuss home loan repricing and refinancing options with you, and provide knowledge and perspective amidst this rising interest rate environment.

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