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Once again, RBA cash rate has increased for June

The Reserve Bank today decided to increase the cash rate, by 0.50% to 0.85%.

The RBA has made the decision to increase rates primarily as a lever to return inflation to its target levels, which is currently sitting higher than target at 5.1%.

Wage growth is currently at 2.4%, which in real terms is -2.7% (inflation less wages growth). This means that Australian workers would be increasingly worse off if inflation is not reigned in.

Lenders can set rates independently of RBA movements and their responses to this rate hike may vary.

I deal with multiple lenders every day, so I know just how flexible they can be to keep or win your business.

It never hurts to ask the question, so get in touch to review your options.

Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.