Car Loans Australia
Private & Commercial Car Loans for New & Used Vehicles
Car Loans Australia :: News
SHARE

Share this news item!

Interest rates up another 50 basis points with more hikes to come

Interest rates up another 50 basis points with more hikes to come

Interest rates up another 50 basis points with more hikes to come?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

As was expected, the Reserve Bank of Australia (RBA) raised interest rates by another 50 basis points this month. The fourth rate hike in as many months, today’s decision takes the cash rate from an emergency low of 0.1% to 1.85%.

Since commencing the tightening cycle back on 5 May 2022, the cash rate has risen by 175 basis points; but despite the rapid hike, the cash rate remains well below the pre-COVID decade average of 2.56%.

The RBA is clearly prioritising fighting inflation over supporting the housing sector and any temporary slowdowns in overall economic activity, as the cash rate approaches a contractionary setting later this year.

If house prices fall and mortgage repayments rise, it might help to limit inflation through wealth effects and may also reduce household spending.

The Reserve Bank of Australia believes that inflation will be back at 2-3% by the end of the year and the cash rate may retreat somewhat through the second half of next year.

The cash rate is forecast to peak at 3.32% in March next year and fall back to 2.99% by the end of 2023.

Today’s rate hike, which is likely to flow through in its entirety to variable mortgage rates within a matter of days, paints a weaker picture for the housing sector.

More rate increases to come

Higher interest rates have already had an immediate downside impact on housing values, with CoreLogic’s combined capital cities index peaking shortly after the first-rate on hike in May.

Since that time, dwelling values across the combined capital cities index are down -2.8% to 1 August, after rising 25.5% through the recent upswing.

According to most bank forecasts, the cash rate could rise at least another 75 basis points before peaking.

With this in mind, the decline in housing values is expected to become steeper and geographically more widespread.

Sydney home values are already falling at the fastest pace since at least the early 1980s, with most of that decline (4.8%) occurring since May’s cash rate increase.

Home prices will be influenced by how quickly interest rates rise and how high they go, as well as the performance of the broader economy, available employment opportunities and demographic trends.

As the cash rate finds a ceiling, housing values should find a floor.

Published:Wednesday, 3rd Aug 2022
Author:

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.

Finance News

What the 2026 Car Loan Awards Mean for Australian Buyers
What the 2026 Car Loan Awards Mean for Australian Buyers
25 Jun 2026: Paige Estritori
The latest 2026 personal and car loan awards from Mozo point to a clear message for Australian motorists: the lowest-cost car finance may not come from the lender you already bank with. The awards assessed hundreds of personal and vehicle loan products across dozens of lenders, with categories covering new car loans, used car loans, secured personal loans, excellent-credit borrowers and green car finance. - read more
RBA Maintains Cash Rate at 4.35% in June 2026 Decision
RBA Maintains Cash Rate at 4.35% in June 2026 Decision
11 Jun 2026: Paige Estritori
In its June 2026 meeting, the Reserve Bank of Australia (RBA) decided to hold the cash rate steady at 4.35%. This unanimous decision reflects the central bank's cautious approach amid ongoing economic uncertainties and inflationary pressures. - read more
EOFY 2026: Unmissable Ute Deals and Tax Insights
EOFY 2026: Unmissable Ute Deals and Tax Insights
11 Jun 2026: Paige Estritori
As the end of the financial year (EOFY) approaches, Australian car buyers have a unique opportunity to take advantage of significant discounts and tax benefits on utes. Several manufacturers are offering compelling deals, making it an ideal time to consider a new vehicle purchase. - read more
Electric Vehicles Capture 20% of Australian New Car Market in May 2026
Electric Vehicles Capture 20% of Australian New Car Market in May 2026
04 Jun 2026: Paige Estritori
In May 2026, electric vehicles (EVs) achieved a significant milestone in Australia, accounting for 20% of all new car sales. This marks a substantial increase from previous months and underscores a growing shift towards sustainable transportation options among Australian consumers. - read more
2026 Subaru Solterra: More Range, Power, and Affordability
2026 Subaru Solterra: More Range, Power, and Affordability
04 Jun 2026: Paige Estritori
Subaru Australia has unveiled the 2026 Solterra, its updated electric SUV, featuring significant enhancements in range, power, and affordability. The new model is now available from $63,990 plus on-road costs, reflecting a substantial price reduction compared to its predecessor. - read more
Click for more Finance News
Time to Refinance?
Image for Time to Refinance?If you are seeking lower rates, lower fees and more flexibility in your home loan. you are in luck! Our national panel of mortgage brokers is looking forward to an opportunity to assist you. Apply online for a free eligibility assessment and one of our broker network refinance specialists will get on the case to track down the best deal for your individual circumstances. Without any obligation and at no charge to you!
... start here ...


Car Loans Articles

5 Strategies for Balancing Your Budget with a New Car Loan
5 Strategies for Balancing Your Budget with a New Car Loan
With the excitement of purchasing a new vehicle, the financial responsibilities that come with a new car loan can often be overlooked. Balancing your budget when you have taken on a new car loan is crucial to financial well-being and long-term happiness with your purchase. In this article, we will explore five practical strategies that can help you navigate the common financial challenges that accompany car loans. - read more
How to Create a Flexible Budget for Your Next Car Purchase
How to Create a Flexible Budget for Your Next Car Purchase
When it comes to buying a car, particularly a used one, having a flexible budget is essential. Flexible budgeting allows you to adjust your spending plan according to your current financial situation and any unexpected changes that might occur. This adaptability is crucial in managing your finances effectively and ensuring you make a purchase that won't strain your resources. - read more
Car Loans: Secured vs Unsecured
Car Loans: Secured vs Unsecured
Car loans play a pivotal role in empowering individuals to afford their own vehicle, which can be a significant purchase. These loans, structured to fit within one's financial situation, can ease the burden of acquiring a car and assist in achieving personal convenience and mobility. - read more
Avoid the Pitfalls: Common Mistakes to Avoid When Seeking Car Finance
Avoid the Pitfalls: Common Mistakes to Avoid When Seeking Car Finance
Entering the world of car finance can be both an exciting and daunting venture. With a plethora of options for car loans in Australia, it is essential for potential buyers to arm themselves with knowledge to make the best financial decision. A well-informed choice can be the difference between a loan that propels your personal mobility, and one that hinders your financial stability. - read more
Avoiding Financial Pitfalls: Tips for First-Time Car Buyers in Australia
Avoiding Financial Pitfalls: Tips for First-Time Car Buyers in Australia
Before taking the plunge into car ownership, it's crucial to have a clear view of your current financial health. Start by evaluating your income, monthly expenses, and any savings you may have set aside. This assessment will give you a realistic picture of how much you can allocate towards buying a car without straining your finances. - read more


Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.

Let's help find your car loan!

Loan Amount:
Postcode:
All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Capital Market:
A financial market in which long-term debt or equity-backed securities are bought and sold.


This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.