Did the RBA do the right thing...
Probably.
The official interest rate today of 4.5% pa is still very low by any standard.
In very simplistic terms for my clients, there are 2 sides to this argument. 1. Loans and 2. Investments.
As some of us mortgage holders wince at the latest rise, investors cheer. The reality, 4.5% return for an investor is still very low.
However, as an home owner with a mortgage this is painful. Personally, I think the banks are too rigid in their quest to pass on the rate rise.
Australians have some of the highest debt in the world and increasing the rates could spell disaster for first home owners, owners of investment properties, builders and developers and business owners.
I’d like to see more time between rate rises. RBA, let the economy do its thing for a few months.
A snapshot of the variable rates for the big 4 banks post rate rise
Westpac at 7.51%
ANZ at 7.41 %
CBA at 7.36%
NAB at 7.24 %
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