RBA increases cash rate again

The Reserve Bank of Australia (RBA) has increased the cash rate by another 0.25%, bringing it to 3.6%. This marks the 10th rate hike since May of the previous year, as the RBA aims to control inflation.

The Governor of the RBA, Philip Lowe, stated that high inflation can make life difficult for people and harm the economy's functioning. He added that it would be expensive to reduce inflation later if it were to become entrenched in people's expectations.

The Board aims to return inflation to the range of 2-3% while maintaining a stable economy, but the path to achieving a soft landing is narrow.

Dr Lowe mentioned that the Board would take necessary measures to bring inflation under control, and he expects further interest rate increases in the months ahead to ensure that inflation returns to its target. However, Australia's annual inflation rate has decreased in January, with the consumer price index for the month at 7.4%, compared with 8.4% in December.

Treasurer Jim Chalmers believes that the worst of inflation is behind Australia.

Several major banks have raised their fixed home loan interest rates before the March RBA announcement. If you're interested in fixing your home loan to avoid future rate hikes or comparing your home loan with other competitors, you can contact the company to explore your options.

Overall, the announcement suggests that the RBA is taking necessary measures to control inflation and maintain economic stability, but further interest rate increases may be on the horizon.

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