BREAKING: For the second month in a row, the Reserve Bank has increased Australia's cash rate, lifting the official rate to 0.85 per cent. 9News READ MORE:
has lifted the nation's interest rates for the second month in a row, raising the cash rate target by a larger than expected 50 basis points to 0.85 per cent.
Governor Philip Lowe said the central bank was well aware of the cost of living pressures facing Australian households, but felt today's hike was necessary based on the current economic climate. "While the central scenario is for strong household consumption growth this year, the Board will be paying close attention to these various influences on consumption as it assesses the appropriate setting of monetary policy."For the average owner-occupier with a $500,000 mortgage, today's rate hike will see monthly repayments rise by a further $133.
"Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago." "Higher interest rate expectations have weighed on housing price growth across the country in 2022. Housing price growth has slowed significantly, with annual price growth falling from 24 per cent six months ago to only 14 per cent in the year to May," Ryan said.
"Financial markets have priced in a cash rate two-percentage points higher at the end of the year, which would raise mortgage repayments by another 24 per cent.
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