RBA Cash Rate Call May 2022

Rate increased for the first time since 2010 by 0.25% amid surging inflation.

This month, the Reserve Bank of Australia (RBA) Board decided to increase the cash rate by 25 basis points from the historic low of 0.1% to 0.35% amid inflation concerns and has signalled more cash rate increases will likely follow.

The board believes that the economy has proven resilient, and inflation has picked up more quickly. Governor Philip Lowe said in his official statement:

“The outlook for economic growth in Australia also remains positive, although there are ongoing uncertainties about the global economy arising from: the ongoing disruptions from COVID-19, especially in China; the war in Ukraine; and declining consumer purchasing power from higher inflation. The central forecast is for Australian GDP to grow by 4¼ per cent over 2022 and 2 per cent over 2023. Household and business balance sheets are generally in good shape, an upswing in business investment is underway and there is a large pipeline of construction work to be completed.”

With interest rate hikes, it’s extremely likely the banks will follow and increase the interest on loans so make sure you get in touch and let us help you find a better deal on your next loan.

Our deal pipeline is building and we are working on all types of new opportunities on very optimal terms throughout the commercial property market, including commercial & residential multi-family construction, retail, offices, and warehouse/industrial spaces (tenanted and vacant).

We are always keen to work with new clients and new business - feel free to reach out! We would love to see how we can help.

If you are keen to learn more get in touch with the team at CapStack. Are you an investor looking to dip your toes into the market? Let us know! Please let us know if we can help in any way to get your commercial property finance needs taken care of. Are you looking to purchase commercial or industrial property within Australia and require bank, non-bank, or private financing?

CapStack can help.

Are you a property developer looking for project finance to get your site moving? We can help assist you source finance. Are you a or property investor looking to purchase your next asset? Start here to connect with is and send though some basic information to get the ball rolling or email us directly. We work with lenders Australia-wide ready to fund investments and development projects.

This is where CapStack comes in.CapStack works alongside Australia's most active lenders from across the board. We help developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing. CapStack works directly with developers and investors who need access to capital markets. How can we help you with your finance needs or those of your clients? Give us a call or start here.