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At the April Reserve Bank meeting the governor said he would:

  • Wait for the release of inflation figures – which came out last week (April 27th ) at 3.4%.
  • Wait for the release of employment / wage figures on May 15th.

I listen carefully to Bill Evans – Westpac Chief Economist, who concurs, he also listens very carefully to the Reserve Bank when it said it intended to wait for the May 15th figure. BUT … Bill Evans notes that the inflation figure at 3.4% will cause the Reserve Bank to move by the cash rate upwards by 0.4% in stages (0.15% this week and 0.25% in June – rather than waiting for June and moving 0.4% in one step)

Bill Evans now predicts the Reserve Bank will move to a cash rate of 2.0% before pausing mid next year.


With banks adding a margin of 1.8% to 2.0% this means you can still plan for an interest rate of 4%.

This is where rates were pre Covid.

Use my loan calculator to work out what your payments should be at 4% (this is a standard setting in my loan calculator) and start paying that now. Follow this link.

Don’t listen to the noise ahead – Listen to me… and I will guide you through this next phase and ensure in my 6 monthly reviews that YOUR interest rate is kept in line with your lenders “new to bank offers”.

If you would like to know more, have a read through the file above. 

If you would like my help to work out what that suggested payment is for you then Ask Alan – I’m here on call or email anytime. It’s what I’m here for.