When rates move, it’s easy to get caught in the headlines and miss the practical part: how this affects your repayments, your cash flow, and the options you have from here. In this update, Zac shares what’s driving the latest change, what it could mean for households and businesses, and the key areas worth reviewing now so you’re making decisions with clarity, not guesswork.
What changed and why it matters
The RBA has lifted the cash rate again as inflation is proving stickier than expected. While inflation is coming down, it’s still sitting above the RBA’s target range. The RBA is trying to slow spending without tipping the economy into recession or slowing it down too much. It’s a balancing act. For borrowers, it might mean that higher rates may be around for longer than originally expected.
What this could mean for you
- Variable rate borrowers will likely see another increase in repayments over the coming weeks.
- Fixed-rate borrowers rolling off over the next 6–12 months could feel a bigger jump than anticipated.
- Business clients may notice tighter lending assessments and more scrutiny around cash flow.
- It puts extra pressure on household and business budgets, particularly where buffers are already thin.
Practical “what to do next” considerations
- Review cash flow now – don’t wait until repayments increase, understand where money is going and where pressure points are.
- Check your loan structure – offset accounts, split loans, interest-only periods and buffers matter more in this environment.
- Refinancing still matters – even small rate differences can make a big impact on monthly cash flow.
- Have a buffer strategy – whether that’s cash reserves, offset balances or access to credit, flexibility is key.
What to watch in the next 3–6 months
- Inflation data, unemployment rate and wage growth, these will influence the RBA’s next moves.
- How consumer spending responds as higher repayments flow through.
- Lending policy changes from banks, particularly around serviceability, lending appetite and business lending.
If you’d like to talk through what this could mean for your loan and what options might be available, reach out to the HTA Finance team.
