RBA's Rate Hike Decision Hangs in Balance Amid Inflation Concerns
The Reserve Bank of Australia (RBA) is set to meet on Tuesday to discuss monetary policy, with market players closely watching for any changes in interest rates.
After three interest rate hikes this year, the official cash rate stands at 4.35%, and another hike would put pressure on households trying to keep up with loan repayments amidst higher costs of living and global uncertainty.
Nick Chong, founder and director at digital mortgage comparison platform Rateseeker, expects a 0.25% interest rate hike, citing hotter-than-expected inflation data in late August as the reason for this prediction.
Chong warned that a rate hike would lead to a 'genuine surge' in refinancing enquiries as people look to shore up their finances and soften auction clearance rates due to decreased buyer confidence.
First-time homebuyers, investors on interest-only loans, and owner-occupiers who are behind on repayments will be particularly affected by the rate hike.