Ninth Interest Rate Hike February 2023

In November 2021, Reserve Bank of Australia Governor Philip Lowe dismissed calls for a 2022 rate rise keeping rates at a record low of 0.1%. He hinted that there would be no rises until 2024, obviously, to keep people going out and getting mortgages. Now in early 2023, there have already been a record nine consecutive rate rises (in order to tame ever-increasing inflation), bringing the cash rate to 3.35%. As you can see in this chart, it’s lift-off for interest rates! And now the Governor is saying he “expects that further increases will be needed”. The RBA will do “whatever is necessary to bring down inflation”. If you lose your house, or can’t afford the rent, too bad, so sad! Now it looks increasingly likely that the RBA are going to keep hiking rates until something breaks in the economy. Only one question remains: Are you ready for the fall?

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