RBA Lifts Rates 0.5% For The Second Month In A Row

At its meeting today, the Reserve Bank of Australia decided to increase the cash rate target by 50 basis points to 1.35%.

Monetary policy globally is responding to this higher inflation with it predicted to be some time yet before it returns to target in most countries. Further, inflation is high in Australia too, with a tight labour market and capacity constraints in some sectors contributing to upward pressure on prices.

Inflation locally is forecast to peak later this year and then decline back towards the 2-3% range next year. Higher interest rates will also help establish a more sustainable balance between the demand for and the supply of goods and services.

According to Dr Philip Lowe, Governor of Monetary Policy at the RBA, the behaviour of household spending is of concern stating:

“The recent spending data have been positive, although household budgets are under pressure from higher prices and higher interest rates. Housing prices have also declined in some markets over recent months after the large increases of recent years.”

As for what’s ahead for the Australian economy and homeowners.

“The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market,” said Lowe in the statement.

“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.”

When people talk about making a seachange, chances are this is the kind of property on the NSW South Coast that they have in mind.

Open for inspection for the first time this Saturday, 24 Point Street Bulli offers rare absolute beachfront, with never-to-be-built-out north facing views of the ocean. Located on the tip of Sandon Point, this two-storey property is a surfer’s dream with one of Australia’s most iconic surf breaks just beyond the back wall.

On the lower floor at street level, there are three bedrooms and two bathrooms, including a family bathroom and an ensuite in the master suite. A fourth bedroom is on the upper floor, along with the main living area, and is serviced by its own bathroom.

While this would make a spectacular holiday home, it is well equipped for day-to-day living, with a spacious gourmet kitchen and butler’s pantry set into the articulated open plan living area on the first floor. A separate media room to the street side of the property on this level provides additional living space.

Every aspect of this property has been considered to take in the light and views, with high ceilings internally and spacious, north facing decks on both levels to take in views of rolling waves. If the pull of the ocean is irresistible, it’s just a 100m walk to feel the sand between your toes.

The house is complemented by a Mediterranean, coastal-style garden, while the garage has room for a workshop and two car spaces.

An easy walk to Bulli village, the property is a 20 minute drive from the major hub of Wollongong and just over an hour to Sydney.

Open: Saturday August 6 2pm-3pm Auction: Saturday September 3 Price guide: N/A but expected to exceed $5.3m paid in March for 1 Alroy Street

Contact: McGrath Thirroul – Vanessa Denison-Pender, 0488 443 174

RBA Lifts Rates 0.5% For The Second Month In A Row

Taming rising inflation is set to put further strain on household budgets.