The Reserve Bank has come out swinging against surging inflation, with industry players now watching for impacts from a larger-than-expected rise to the cash rate.
The Reserve Bank of Australia (RBA) has decided to increase the cash rate by 50 bps, from 0.35 per cent to 0.85 per cent.
The move marks the largest increase to the rate in 22 years, since the RBA raised by 50 bps in February 2000.
It has also followed on from the 25-bp increase in May, when the RBA lifted the rate for the first time in more than a decade, up from its historic low of 0.1 per cent.
While economists had been certain a rise was on the cards, most had assumed the RBA would either choose from a 25-bp or 40-bp increase, after the central bank deliberated between the two options in May.
Joondalup Homes stated that this is not the last of the rate rises and borrowers should prepare themselves for higher repayments. They also mentioned, that a free home review is your best option moving forward to ensure you protect yourself from increased cashflow burdens.