At the meeting of the Reserve Bank of Australia (RBA) Board on Tuesday 7 March, it was decided to increase the cash rate by 0.25%. Taking the rate from to 3.6% which is an 11-year high. The latest interest rates rise is the 10th in a row from the RBA and was no surprise as the Board had said following its February meeting that further rises would likely be needed to bring down inflation. These RBA increases typically flow through most lending areas including for consumer finance such as motorcycle loans.
Lenders in the consumer finance are extensive and varied. They operate to their own guidelines and as such, the responses to RBA rate decisions are varied. Leaving options for cheaper interest rates to be sourced. There are a number of ways that Jade Bike Loans assists buyers to secure affordable motorcycle loans with cheaper interest rates and negotiated terms. There are also options that buyers can consider themselves in their quest to acquire motorcycle finance that works with their individual budget.
We provide our tips for more affordable motorcycle loans but first a rundown on the latest announcement from the Reserve Bank and remarks made by the Governor, Philip Lowe, in a speech on Wednesday 8 March which may indicate an easing of rate rises is ahead.
Reserve Bank March Rate Decision
A media release is posted to the RBA website announcing the monthly interest rate decision by the Board. These releases can be informative, especially for those intending to apply for finance, as they typically include the Board’s outlook for rates moving forward.
Summary of rate rise announcement:-
- Cash rate increased by 0.25%.
- Global rates of inflation remain very high but are moderating.
- The peak of inflation in Australia appears to have been seen in December as per indications from the latest CPI. The Board expects prices for goods to moderate over the months ahead as a result of a softening in demand domestically and developments emerging overseas.
- A high rate of inflation for services is being seen in some sectors, especially the rental market.
- The Board’s forecast is for a fall in inflation this year and by the middle of 2025, approaching the 3% target.
- Growth in wages is seen but the Board sees a low risk of a price-wage spiral happening. Despite this lower risk, the Board is keenly watching price setting and labour costs.
- While a moderation in inflation is being seen in other countries, the RBA noted that there is uncertainty about how quickly demand and spending will be seen in the Australia as interest rates increase.
- More interest rates rises are likely to be required as the Board prioritises returning inflation to target and ensuring the current inflationary period is only temporary.
Details of what options were discussed by Board members were not included in the media release, which is the usual approach. Details of the Board discussions are included in the Minutes of the meeting which will be released on 21 March.
Remarks by RBA Governor
The RBA Board meeting announcement was followed the next day by a speech to a business group by the RBA Governor, Dr Philip Lowe. The remarks made by Dr Lowe provided additional information on the Board’s outlook for the economy and in particular, for monetary policy, ie interest rates.
The entire speech is quite lengthy, but here are the key remarks made on interest rates:-
- Expectation for inflation to drop this and next year but there is uncertainty about the precise path.
- RBA Board discussed how interest rates had reached ‘restrictive territory’.
- The situation is now ‘closer’ to the point where the Board considers it would be time to pause the rises in interest rates.
So we may be nearing a hold on rates but a number of analysts and economists including from the major banks have expressed the view that rates will be increased at least once more, possibly twice and reach a cash rate of 4.1%. The next meeting of the RBA Board to make a decision is the first Tuesday in April.
Tips for Affordable Motorcycle Loans
With interest rates once again on the rise and the possibility of further increases, it's crucial to know how to secure affordable motorcycle loans, especially when you have No Deposit Bike Finance options available. Here are some valuable tips to help you get the best deal on your motorcycle loan:
- Use a Finance Calculator: Before making a purchase, utilize a finance calculator to ensure that the bikes you're considering fall within the affordable repayment zone. This way, you can find motorcycles that fit your budget comfortably.
- Work with a Specialist Motorcycle Finance Broker: Opt for the services of a specialized motorcycle finance broker like Jade Bike Loans, which can connect you with more lenders. With access to a wider range of lenders, they can quickly find the cheapest interest rates available.
- Negotiate the Loan Term: Benefit from a Jade consultant's expertise to negotiate with lenders and achieve a suitable loan term that results in your target repayment. This personalized approach can make a significant difference in securing a loan that aligns with your financial situation.
- Maintain a Good Credit Score: A good credit score can make a substantial impact on the interest rates offered to you. Keeping your credit score in good standing will increase your chances of getting the most favourable rates.
- Address Other Debts and Financial Commitments: Before applying for a new loan, try to address and reduce other outstanding debts and financial commitments. This can improve your credit profile and attract better interest rate offers from lenders.
- Consider Paying a Deposit: If possible, consider reducing the total loan amount required by paying a deposit upfront. Paying a deposit can make your loan more manageable and may lead to better loan terms.
- Opt for a Fixed Interest Rate: To ensure your repayments won't be affected by future interest rate rises, choose a loan with a fixed interest rate. Unlike variable rate motorcycle loans, fixed-rate loans provide more stability in uncertain economic times.
- Make Use of Manufacturer's Discounts and Specials: Take advantage of any manufacturer's discounts or special offers to save on the purchase price of the motorcycle. By reducing the overall loan amount required, you can keep your monthly repayments lower. By utilising the Motorbike Finance Calculator and following these tips, you can secure an affordable motorcycle loan that suits your needs and budget.
Contact Jade Bike Loans at 1300 000 003 for cheaper interest rates and more affordable motorbike loans.
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA IS PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
