The True Story On Interest Rates

While the nation's eyes were on Flemmington on Tuesday, the board of the Reserve Bank of Australia meet in Sydney for their usual monthly meeting on the first Tuesday of every month. And SURPRISE... they decided to leave the official "cash" interest rate on hold.

That's a rate of 1.5%, and it's been at that measure since August 2016 - a record 26 months. But while that's been the stat that most of the media and financial world has talked about, the most important number, we think, has been overlooked. That number is 85. It's been 85 months, or 7 years, since the official interest rate was last raised. That's an astounding statistic. The last official increase of 0.25% was made by the RBA board, coincidentally, on Melbourne Cup day in 2010. Since then, rates have either gone down or stayed the same - at the current record low. That's pretty important. Why? Well that depends on your bank and your own home loan. You should ask yourself this question. Since 2010, how many times has your interest rate changed? And more importantly, how many times has it gone up? Because we know, that despite it being 7 years since the official rate was increased, your home loan rate has gone up, more than once. Now ask yourself - how does that make sense? Just take note, over the last 7 years, the big four banks have made almost $200 billion in profits. Does that make more sense? Time to review your home loan and interest rate - get a better deal.