Interest Rate Update: Latest RBA Increase

November Interest Rate Update

Last Updated 16 November 2009

With the global economy resuming growth, the RBA felt the need to raise interest rates for the second consecutive month in November – a 0.25 per cent increase takes the official cash rate to 3.5 per cent. A revised outlook on its economic forecasts for 2010, indicating that consumer sentiment in the global financial markets is gaining traction has the RBA certain that interest rates will be raised higher over the coming months also.

As many leading economists / analysts predict that interest rates will rise by at least another 1.5 per cent over the next 12 months and while interest rates slide away from historical lows, borrowers need to be buffer themselves against future interest rate rises to ensure they can service their loan repayments. There has never been a better time to keep a close eye on your banking products and shop around to see what is available in the market.

Standard Variable Rate Home Loans

History shows that most lenders are quick to pass on rate increases to their home loan borrowers. While a large majority of borrowers may not pay the headline standard variable rate offered by the major banks, this is a good starting point for identifying what a typical borrower should be paying. Standard variable rate loans are often offered in the form of a professional package, whereby borrowers are given a discounted rate (usually up to 0.70%) for the life of their loan. The only downside is that they might have to pay a $300-$400 annual fee. 

High Interest Savings Accounts

Low Rate Credit Cards