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As cost of living rises again, interest rate hikes are on the cards.

 |  Oracle Accounting & Wealth

2023 0118 Interest Rates Set To Rise Again

Further hikes in interest rates are expected this year after new figures showed inflation increased again in November.
New Australian Bureau of Statistics (ABS) figures have found inflation rose 7.3 per cent over the year to November, as the cost of housing, food and travel increases.
The data revealed the inflation rate was back up from 6.9 per cent in October, putting the pressure on the Reserve Bank of Australia to lift interest rates.
Economists expect the cash rate will rise 0.25 per cent next month.
The cost of living has been the biggest concern the Reserve Bank of Australia has weighed up when deciding how fast and far to raise interest rates.
The ABS said Australian retail turnover rose 1.4 per cent in November 2022 to a new record high.
The rise in turnover was driven by Black Friday sales, which boosted spending on clothing, footwear, furniture, and electronic goods.
Retail turnover rose in all states and territories.
Last year the Reserve Bank increased Australia’s cash rate eight times.
After slashing rates to an unprecedented 0.1 per cent, the Reserve Bank of Australia (RBA) began one of the most aggressive hiking patterns in recent memory, lifting the cash rate eight times to its current level of 3.10 per cent.
The last time Australia had an interest rate above 3 per cent was in October 2012, when the median Australian house price was just under $520,000.
Since May, the average borrower with a $500,000 mortgage now has to find an extra $834 a month to meet repayments, while someone with a $1.5 million mortgage has had to carve out an eye-watering $2501 extra every month.
Article credited to 9News
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