The decision by the Reserve Bank of Australia to increase the cash rate by 25 basis points to 4 per cent
appears contrary to the language used by the central bank in its last decision, according to the Real
Estate Institute of Queensland (REIQ).
Explaining its decision to hold rates steady last month, the Reserve indicated rates may need to be
increased, over time, as economic conditions broadly evolved. However, today's decision follows an
unprecedented three rate increases in a row at the end of last year.
"This new rate rise may be a surprise to many homeowners, who may have believed the Reserve was
prepared to sit on the side-lines over the short-term," REIQ managing director Dan Molloy said.
"This increase means homeowners will now need to re-adjust their budgets again and probably earlier
than they expected."
