Reserve Bank Interest Rate Announcement

The reserve bank decided to keep rates on hold at 4.75 per cent despite recent news that inflation was running higher than expected.

It’s good the Reserve Bank have decided to wait and see if the higher inflation is temporary thanks to recent disasters and seasonal factors, rather than attack it with another interest rate rise.

Households are already facing increased living costs and will be grateful they don’t have to dig deeper into their pockets for at least another month.

The official interest rate is now 4.75 per cent and mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.

Mortgage holders should always try to pay extra off their loan to give themselves a buffer in case rates do rise. 17 months can be wiped off the average new mortgage and save $30,085 in interest by paying an extra $60 per month or about the equivalent of a 0.25 per cent rate rise.

About The Author

Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.

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