RBA Interest Rate Decision: Impact on Australian Property Prices, Mortgages and Borrowing Power
episodeTranscript
jump: chapters · find in transcriptTranscript
Transcript generated automatically by AI and may contain errors.
What recent decisions has the RBA made regarding interest rates?
Every morning from 6am, we bring you the latest real estate news with diverse perspectives from leading industry experts. We deliver the most property podcasts across Australia every week. It is another Tuesday afternoon. We have been waiting for this one. It'll be interesting. What is the RBA going to do in light of everything that is going on with these geopolitical tensions, especially with the Iran war? Anthony Landau from Equilibria Finance is with me. He knows the result. What have they done, Anthony? The RBA has decided to increase the cash rate this afternoon by 25 basis points from 3.85% to 4.10%. If we had this discussion three weeks ago, that probably was not in play. But obviously, with the war in Iran, the petrol price shock, inflation well and truly above the target range, the RBA has decided to bring that forward to the March meeting.
So cash rate's up to 4.10%. Unfortunately, we're going to be looking at another one probably in May. What do you think? Yeah, look, I think inflation, even irrespective of the war that's obviously now taken hold, has been blowing out on the back of a lot of government spending. The RBA was already looking at potentially a May increase. So it looks like now we've got today's increase and potentially another one in May, which would be a total of 50 basis points once we come through to May. You know it's interesting because last year talking to a couple of different economists I always say we're just one global event away from something happening and I remember one economist in particular was saying well yes that's true but you know we're sort of so far away from the action it probably won't affect us and I thought at the time I thought really because you know a global event is a global event as we're finding out.
Yeah, I mean, there was concern about our inflation just from a domestic point of view, even before the global shock with petrol prices. So I think either way, inflation was getting away again with this out of control government spending.
How do geopolitical tensions influence the RBA's decisions?
But I think this global price shock and the geopolitics has essentially played the RBA's hand and that's had a massive impact on petrol prices, up some 40% in the last few weeks. Yeah, double whammy all round. Okay, Anthony, well, that is not good news for those with mortgages. Thanks for the update. Enjoy the rest of your day. Thanks very much. We have so many episodes, all designed to help you better understand the constantly evolving and dynamically changing real estate property market.
No segments match your search.
Select any passage to copy it with its citation or turn it into a shareable card.
Chapters
2 chaptersMore from Aussie Real Estate Podcast
Josh Tesolin Banned for 10 Years: What It Means for Australia’s Real Estate Industry
Australia Property Market Slowing: Interest Rates Impact Sydney and Melbourne Growth
How Higher Interest Rates Are Changing Property Buying in Australia: First-Home Buyers and Investors Respond
Melbourne Property Market Distortion: First-Home Buyer Stamp Duty Cap Driving Price Pressure
Australia Housing Market Stability: Low Mortgage Arrears and Minimal Negative Equity Explained
Australia Property Prices Rising: Construction Costs, Materials and Fuel Driving the Market