min read
· Posted on
February 21, 2024

Interest rates November 2022: Spooky rates are getting higher and higher

The RBA’s November decision is in. For the sixth consecutive month, the cash rate has risen. See how this affects you.

What's the key learning?

  • The cash rate has risen from 2.60% to 2.85%
  • The last time the cash rate was this high was back in 2014
  • This will cost borrowers with a $500,000 mortgage around $77 more per month in repayments

The RBA’s November decision is in and it's really taking Halloween to heart with a spooky, sixth consecutive month of rate rises. This month, the cash rate has risen by 0.25% to 2.85%. 

While this rise is no surprise, it’s taking some serious getting used to. The cash rate hasn't been this high since way back in 2014! Remember ice bucket challenges? Yep, THAT long ago. 

So, what happens when interest rates rise?

When the RBA increases the cash rate, then the banks will almost always raise the interest rate on your loan. And your interest rate on your savings account should increase too (but often doesn’t).

Experts reckon it takes around two or three months for individuals to feel the full impact of a rate rise on their cash flow… so the impact of these successive rises will be settling in for a while yet…

How will the cash rate hike impact my home loan?

Here’s a breakdown of how rate rises could impact your home loan if you’ve got a variable rate:

Source: MoneySmart. Based on owner occupier loans of $500,000, $750,000 and $1,000,000 over 25 years.

Why does it feel like rates are so much higher than usual?

You’re not imagining it, they are! But it probably feels even higher because as recently as this May, interest rates were at a historic low of 0.1%.

Here’s a recap of the rises this year:

  • May: 0.35%
  • June: 0.85%
  • July: 1.35%
  • August: 1.85%
  • September: 2.35%
  • October: 2.60%
  • November: 2.85%

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