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“Aaaargh!!! 50 basis points!! Our rental cashflow is going to take a hammering!”
This is an actual text I received yesterday, from one of my investors.
That’s because the Reserve Bank announced they will lift the OCR by 0.5% (to 1.5%).
They’ve made this move to fight inflation and the rising cost of living – which is expected to peak later this year at 7%.
Before we talk about what higher interest rates mean for you as an investor – here's a quick summary of why the Reserve Bank made the move.