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Reserve Bank of Australia

Once again, RBA cash rate has increased for June

The Reserve Bank today decided to increase the cash rate, by 0.50% to 0.85%.

The RBA has made the decision to increase rates primarily as a lever to return inflation to its target levels, which is currently sitting higher than the target at 5.1%.

Wage growth is currently at 2.4%, which in real terms is -2.7% (inflation less wages growth). This means that Australian workers would be increasingly worse off if inflation is not reigned in.

Lenders can set rates independently of RBA movements and their responses to this rate hike may vary.

An AFG broker deals with multiple lenders every day, so they know just how flexible they can be to keep or win your business.

It never hurts to ask the question, so get in touch to review your options.