RBA Cash Rate Decision March 2022
RBA Cash Decision February 2021
February 2, 2021
RBA Cash Rate Increase – Variable vs Fixed Rate Home Loans
May 9, 2022
RBA on the state of the Australian Economy March 2022
The RBA have concluded their March meeting, Tuesday the 1st of March 2022 for their cash rate decision. The RBA board decided to keep the cash rate to a historical low of 0.10 points.
Australian Economy
Governor Lowe and the board made the following comments on setting the Australian RBA monetary policy.
The global economy is showing recovery from the pandemic, though the war in Ukraine is providing a source of uncertainty. This is impacting global inflation.
Strong local labour market, with the unemployment rate at a 14-year low of 4.2 per cent. Underemployment is also at its lowest level since 2008. The RBA forecast unemployment rate to rate below 4 per cent in 2022.
Inflation has picked up and exceeded the RBA expectations. Forecast for inflation to increase further to 3 1/4 quarters before decling sub 3 per cent in 2023 as the supply chain issues are resolved.
Interest Rates
Interest rates for mortgage lenders remain at a historical low. We can see the variable rates at historical low, with fixed rates continue to increase from September 2021 to now. Reflecting a higher cost of borrowings in the longer term.
RBA is pleased with a lower Australian Dollar
Housing prices across the country have been increasing, but the rate of increase has started to ease.
The RBA is causiosly reviewing the flooding emergency in Queensland and New South Wales. Understanding that mortgage and business owners will need further support during this period.
The RBA has decided to maintain the cash rate. Supporting the local economy, there is expectation that the central bank will increase the rates in the second half of 2022, perhaps after the election. Time will judge if the Australian economy is caught on the correct side of the lending curve in line with overseas markets.
For now it is a wait and see approach.
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