Ep.32 How Your Interest Rate is Affected by the RBA

Welcome to another episode, and this week we’re focussing on the RBA and its role in affecting the interest rate you pay on your home loans. We touch on inflation bands, the cash rate, how its changed, and what the RBA focusses on.

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HERE’S WHAT YOU’LL LEARN FROM TODAY’S EPISODE:

 What interest rates are and how they work;

  • How interest rates are set by your bank;

  • Where your bank gets its target and guidance from in relation to the RBA;

  • How the RBA decides on the target cash rate;

  • What inflation is and an example of it in action;

  • How the RBA’s actions affect inflation;

  • The past 20 years plus of the RBA’s target rate and what the future might hold;

  • What to factor in to your decision making when looking at repayments;

  • Why banks have increased their home loan rates recently even though the RBA has stayed on hold;

  • How you can get on top of your potential repayments;

  • How and why are fixed and variable rates different;

  • Is there a right answer on the best type of loan at present.

ARTICLES OR SOURCES MENTIONED

RBA's last 25 years history 

SPEAKERS IN TODAY’S EPISODE

Michelle May - Sydney Buyers Agent

Marcus Roberts - Mortgage Broker

ASK US ANYTHING!

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Please note that any views or opinions presented in this podcast are solely those of the speakers, and do not necessarily represent those of any business. These views and opinions are general in nature, and do not take account of your personal objectives, financial situation and needs. Please consider whether it applies in your circumstances and seek professional advice wherever appropriate.