RBA Interest Rate Decision for 2023: Announced

The Reserve Bank of Australia (RBA) has announced its first RBA interest rate decision of the year after a substantial increase in inflation. The cash rate target has been increased by 25 basis points to 3.35 percent.

First RBA interest rate decision of the year

Mortgage Choice CEO, Anthony Waldron, said that the RBA was under pressure to raise the cash rate due to Australia’s largest annual increase in inflation since 1990.

Moody’s Analytics macroeconomist, Harry Murphy Cruise, added that another rate hike in February is likely due to inflation still being higher than desired.

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University of Sydney Professor of Macroeconomics, James Morley, said the RBA is likely to raise rates again but will signal in advance before pausing. ABC Refinery economist, Nicholas Frappell, added that strong labour data and CPI data suggests that rates will continue to rise toward the expected terminal rate.

This interest rate hike is likely to impact the people of Australia in several ways. It could lead to higher mortgage repayments and increase the cost of borrowing for personal loans and credit card debts.

It could also put pressure on the economy as businesses face increased costs and consumers have less disposable income.

Taking control of finances with the help of a financial advisor

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In light of these developments, it is advisable for individuals to seek the assistance of a financial advisor. A financial advisor can help assess their current financial situation, identify areas of risk and suggest ways to mitigate it.

They can also help individuals manage their debt, create a budget and plan for their financial future. With their expertise and guidance, individuals can take control of their finances and prepare for any challenges that may arise due to changes in interest rates.

BloomWealth is a team of trusted and highly-skilled financial planners based in Sydney.

We can help you take control of your financial future and fulfill your true potential. Get in touch with us to ensure you are equipped with everything you need to make informed financial planning decisions.

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