The Opposition said the latest cash rate hike is a “wake-up call” for the government, describing the high inflationary environment as “homegrown”.
“Given the importance of returning inflation to target within a reasonable timeframe, the Board judged that a further increase in interest rates was warranted today,” he said.
“The Board held interest rates steady last month to provide additional time to assess the state of the economy and the outlook. “While the recent data showed a welcome decline in inflation, the central forecast remains that it takes a couple of years before inflation returns to the top of the target range.”“This is not inflation coming from Vladimir Putin. This is not inflation caused by the Reserve Bank. This is homegrown inflation,” he said.
“We need a government that has a clear plan to deal with these inflationary pressures and take pressure off interest rates to give the Reserve Bank an opportunity to pause and ultimately bring interest rates down.” The increase adds an extra $78 a month to mortgage repayments for those with a $500,000 loan, $117 for a $750,000 mortgage and $156 for a $1 million loan.
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