As the curtain falls on 2023, the RBA decided to play Santa a little early last week, keeping the official interest rate steady at 4.35% in its last board meeting. If you’re feeling the way that a lot of Aussies are, you’ll be just as relieved as we are that we’ll be hitting 2024 with a bit more stability.
If you missed the news last Tuesday, here’s a recap: in the shadow of October’s sharp decline in monthly inflation and the noticeable impact of previous rate hikes on the job market, the RBA increased rates by 0.25% in November to try and deal with that pesky stubborn high-inflation (you know the one – it’s the reason people have been reporting vegemite costing $9 now).
Over the course of the year, rates were raised by a total of 1.25 percentage points, translating to an additional burden of about $500 per month for a $600,000 mortgage.
The decision to maintain the cash rate at its current level signals the RBA’s commitment to a prudent, data-driven approach. This approach allows time for a comprehensive assessment of the consequences of recent rate hikes on demand, inflation, and the labor market. By taking this pause, the RBA aims to strike a delicate balance between managing inflationary pressures and fostering sustainable economic growth.
For Caifu Property and our valued clients, this decision sets the tone for the real estate investment landscape as we enter 2024. It provides a moment of stability and reflection, allowing investors to recalibrate their strategies in response to broader economic trends.
We’ll keep you updated when more changes occur. If you want to be the first to hear from us, follow us on Instagram.