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How does the RBA changes affect me?

Information on the Reserve Bank of Australia & changes to the cash rate

Updated over a week ago

The Reserve Bank of Australia (RBA) meet throughout the year to discuss economic indicators that influence the banking system - one of these is the ‘official cash rate’, also known as OCR.

What is the Official Cash Rate?

The official cash rate is the interest rate charged on unsecured overnight loans between banks. In simple terms, it’s how much it costs banks to borrow from each other.

When does the RBA meet?

The Reserve Bank of Australia’s board meets eleven times a year, on the first Tuesday of every month, except in January.

Why does the RBA change the cash rate?

At each meeting, the RBA decides whether to increase or decrease the cash rate to balance economic stability, whilst protecting and promoting financial prosperity for Australia.

The recent cost of living pressures, also known as inflation, has encouraged the RBA to increase the cash rate to counter this inflation. By making it more expensive for Aussies and businesses to borrow money, it reduces overall demand for products and services. This helps reduce prices as supply is greater than demand.

Why does this affect my interest rate?

The RBA’s decision to increase the official cash rate makes it more expensive for lenders to borrow money – a key consideration for how lenders price their loan. Learn more about how interest rates are determined here.

What does Unloan do when the cash rate changes?

When the RBA decides to increase or decrease the cash rate, Unloan reviews the impact on our Live-In and Invest interest rates. We’ll communicate any changes to our interest rate on our website, and via email.

We remain committed to providing Aussies with a home loan that’s easy to get, and easier to live with. Learn more about our award winning value here.

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