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What does an increased cash rate mean for me? | WeMoney
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On the 3rd of May 2022, the Reserve Bank of Australia (RBA) announced that the cash rate will be increased by 25 basis points, taking the cash rate from 0.1% to 0.35%. After more than 10 years of the cash rate going down or staying the same, the move shocked many of us. During the announcement, the RBA governor Philip Lowe said:“The board judged that now was the right time to begin withdrawing some of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic."So while the decision was made in the best interests of the Australian economy, and certainly wasn't entirely unexpected, it still managed to surprise a lot of us. But what does an increased cash rate mean for me? And how will it change my loan repayments? What is the cash rate?In case you're not entirely sure what the RBA cash rate is, the cash rate is the rate that the charges banks when they borrow money. When the cash rate goes up, it costs more for banks to borrow and this...
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