After almost a year, we FINALLY have a month where there's no cash rate rise.
We thought it would never end, but after almost a year of back to back rate rises, the RBA has finally announced that this month there will be NO CASH RATE RISE.
The cash rate has been on the rise every single month since May last year (except January, when the RBA be on break).
In that time, the cash rate has gone up from 0.1% to now 3.6%. But RBA, it’s time to take a chill pill.
Despite the US central bank charging ahead with their cash rate rises in late March, the RBA isn’t following suit.
There was actually a lot of debating this month on whether or not the RBA would raise the cash rate this month.
Especially since we saw the collapse of Silicon Valley Bank and the scramble to save Credit Suisse shortly after.
Major banks were see-sawing on whether the bank will raise rates or not.
CBA said there was a 55% chance that the RBA will hold the interest rate at 3.6% in April, and they were right.
Phew! A month to breathe.
When the RBA increases the cash rate, the banks will almost always follow suit and raise the interest rate on your loan.
Experts say it takes around two or three months for individuals to feel the full impact of a rate rise on their cash flow… so the impact of these successive rises won’t be felt until the new year.
And your interest rate on your savings account should increase too (but often doesn’t increase to the same extent).
Here’s a recap of the rises this year:
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