The RBA's gift of stability this holiday season!
Key points
- Interest rate hikes are on pause for December
- Monthly Consumer Price Index (CPI) indicator rose to 4.9%
- Stay on top of your financial wellbeing – check your credit score
Interest rate nightmare is on a temporary pause
The Reserve Bank of Australia (RBA) held the nation’s official interest rate stable at 4.35%. While this is a relief for some of the mortgage holders, for others it’s still is a stressful way of ending 2023.
A study done by Roy Morgan revealed that the most recent interest rate rise has put 1,581,000 mortgage holders at risk of high financial stress. This is 30.4% of all mortgage holders in Australia and an increase of 8,000 from September.*
October measure of inflation comes lower than expected
The monthly Consumer Price Index (CPI) indicator rose to 4.9% in October. This is down from 5.6% in the 12 months to September and lower than the RBA’s forecast.
The most significant contributors to the October annual increase were housing (+6.1%), food & non-alcoholic beverages (+5.3%) and transport (+5.9%).
To assist renters, the maximum available rate for Commonwealth Rent Assistance (CRA) increased by 15% on the 20th of September. As a result, the annual increase in rents is currently sitting at 6.6%, lower than the rise of 7.6% in September, despite the low vacancy rates and a tight rental market.
What does this have to do with my credit score?
One or two more interest rate increases are possible for inflation to decline to within its 2-3% target range by the end of 2025. If you can’t meet rising repayments, it could impact your credit score.
We want to stand by you and support you during times of uncertainty. Below options may interest you.
- Did you know that you can complete your Financial Wellbeing checkup with Credit Savvy?
- If you are a customer of the Commonwealth Bank of Australia (CBA) experiencing financial difficulty, you can choose to contact CBA’s Financial Support Hub.
- If you have the CommBank app, make sure to tap “CommBank Yello” to access personalised cashback offers from Australia’s most-loved brands.
*https://www.roymorgan.com/findings/mortgage-stress-risk-october-2023
