Come what May, or June, our first interest rate rise in sixteen months is near, and it may arrive as early as five days from now.

 

 

interest-rate-rise

 

 

Mortgage holders, get ready for it. We built it and they are coming.

 

As inflation increases, further interest rate rises are forthcoming – that’s the takeaway from the RBA’s (Reserve Bank of Australia) summary of their just-released April minutes.

 

 

Officially, there wasn’t any change to rates, just raising the expectation and the minor removal of the word ‘patient’ in their text. The RBA has let us know it has lost patience, and the inevitability of increases is here. 

 

 

Will we see an increase before or after the federal election? Inflation may have more votes than all of us.

 

 

Inflation in the March quarter expected to be above 3% and continue to rise.

 

Australia’s financial resilience to turmoil allows the RBA to rationalise a significant change but is insistent they’ll wait on data to assess the evidence before any official rate raise. 

 

We will officially know on May 2nd with the RBA’s speech, and docs released by the 5th will be available for analysis.

 

Reserve Bank of Australia

 

There is nothing we can see that makes this a good idea for renters, so investors with mortgages and their tenants should start to communicate and see what resolutions are available.

 

Historic Aussie Interest Rates

 

Historic Aussie Interest Rates-05

 

Most lenders are hinting that 2022 will turn up multiple rate hikes and try to lift Australia's cash rate closer to 1.5 per cent by the end of 2023/24. 

 

With the cost of living and the lowest housing availability, no matter who gets to run the country, it will involve some severe and overdue investment in the housing and rental industry.

 

 

Australian interest rates compared with the G20

 

Country

Last

Previous

Reference

Switzerland

-0.75

-0.75

Mar/22

Japan

-0.1

-0.1

Mar/22

Euro Area

0

0

Apr/22

France

0

0

Apr/22

Germany

0

0

Apr/22

Italy

0

0

Apr/22

Netherlands

0

0

Apr/22

Spain

0

0

Apr/22

Australia

0.1

0.1

Apr/22

Singapore

0.33

0.41

Feb/22

United States

0.5

0.25

Mar/22

United Kingdom

0.75

0.5

Mar/22

Canada

1

0.5

Apr/22

Saudi Arabia

1.25

1

Mar/22

South Korea

1.5

1.25

Apr/22

Indonesia

3.5

3.5

Apr/22

China

3.7

3.7

Apr/22

India

4

4

Apr/22

South Africa

4.25

4

Mar/22

Mexico

6.5

6

Mar/22

Brazil

11.75

10.75

Mar/22

Turkey

14

14

Apr/22

Russia

17

20

Apr/22

Argentina

47

44.5

Apr/22

 

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Sam Bloch

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Sam Bloch

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