Rates are going up again

Economists are divided over the probability of an April rate rise by the Reserve Bank. NAB is expecting “that the Reserve Bank will wish to rapidly unwind its current expansionary policy settings.” Commonwealth Bank. “The Reserve Bank has set the scene for a gradual policy tightening,” it said.”There are nine monetary policy meetings to come this year, and we expect the RBA to raise rates at four of them.”

The current cash rate set by the RBA in March is 4.0 per cent. Retail variable mortgage are two to three per cent above that. Another 1.0 per cent on average mortgage repayments on a loan of about $300,000 could take monthly repayments up by more than $200 to $2173 per month.

Source: Sydney Morning Herald