Rates set to rise as RBA governor says ‘heat’ needs to be taken out of job market

Interest rates remain in focus

Australia’s interest rate outlook remains under close attention ahead of the Reserve Bank of Australia’s next Monetary Policy Board meeting on 28–29 September.

The RBA has indicated that conditions in the labour market remain tight, contributing to ongoing pressure on wages, business costs and inflation.

August unemployment data is due to be released before the meeting and will provide another update on conditions in the Australian economy.

Fixed mortgage rates move higher

Expectations of higher interest rates have already affected home loan pricing, with fixed mortgage rates increasing across parts of the market.

Several lenders have recently increased fixed home loan rates, with some one- and two-year fixed rates now sitting above their lowest available variable rates.

The changes reflect a shift in mortgage pricing as lenders respond to expectations around future interest rate movements.

Borrowers face changing loan conditions

Higher fixed rates may affect borrowers considering whether to fix their mortgage, remain on a variable rate or review their existing home loan.

Interest rates and loan options can vary depending on the lender, loan structure and individual borrower circumstances.