Live: Reserve Bank tipped to increase interest rates for seventh month in a row

Analysis: The biggest cost-of-living increase this year is set to rise againMany Australians who are struggling with soaring inflation are about to face another increase in the fastest-rising cost of living: interest rates.

As in past years, the Reserve Bank of Australia meets on Melbourne Cup Day and the only question analysts are asking is: 'How much will it lift interest rates?', not whether it will lift them at all. The financial markets are pricing in a slightly greater than 20 per cent chance that the RBA will revert back to a 0.5-percentage-point rate rise, having eased off to 0.25 of a percentage point in October.

However, the other 80 per cent are in favour of another, standard, 0.25-percentage-point rise, which would take the cash rate from 2.6 per cent to 2.85 per cent.Calculations from RateCity show that the 2.5 percentage points of rate rises so far this year have added 29.4 per cent to the cost of mortgage repayments on a 25-year loan.

As a rough rule of thumb, for every $100,000 of debt, each 0.25 percentage point rate rise adds a bit less than $15 a month onto repayments.

the Reserve Bank is being run by economic terrorists with a nazi at the top

Can't believe that Philip Lowe still has a job after his prediction last year

A 0.25% nibble won't be enough to tame rampant inflation

unironically the right move

Fingers crossed it’s only 0.25% and nothing more. Many families are going to be thin on the ground for Christmas.

Probably another quarter

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Memo RBA board: Time to stop digging in deeper on interest ratesIf the advanced economies’ central banks push the world into recession, the biggest risk isn’t that they’ll drag us down too, but that Australia’s Reserve Bank will raise interest rates too far. 1RossGittins The world was heading towards recession anyway, in 2018/19. But central banks thought they could kick it further down the road and no one would notice. Now we have a recession where the effects are far worse. Well done fellas. 1RossGittins I want a beachside property at a knock down price
Source: smh - 🏆 6. / 80 Read more »

Inflation jolt in Europe challenges hopes for slower rate risesStronger-than-expected data in Germany, France and Italy is challenging the view that central banks will start to temper interest rate increases.
Source: FinancialReview - 🏆 2. / 90 Read more »

‘We’re heading into uncharted territory’: Expected rate rise will test borrowers’ limitsEconomists say recent home owners are at greater risk of mortgage stress as the interest rate is tipped to rise above serviceability buffers. TawarRazaghi Uncharted territory? I would have thought we were going back to normal rates.
Source: smh - 🏆 6. / 80 Read more »

‘We’re heading into uncharted territory’: Expected rate rise will test borrowers’ limitsEconomists say recent home owners are at greater risk of mortgage stress as the interest rate is tipped to rise above serviceability buffers.
Source: brisbanetimes - 🏆 13. / 67 Read more »