The Reserve Bank of Australia has made a move on interest rates - and it’s bad news for mortgage holders. 7NEWS
The Reserve Bank of Australia has hiked the interest rate for the first time in more than a decade in response to soaring inflation.“The board judged that now was the right time to begin withdrawing some of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic,” he said in a statement.“The economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected.
“The resilience of the Australian economy is particularly evident in the labour market, with the unemployment rate declining over recent months to 4 per cent and labour force participation increasing to a record high,” he said. “The board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.
Last Wednesday, the Australian Bureau of Statistics announced inflation had risen to 5.1 per cent, its highest point in more than 20 years.What does a cash rate hike actually mean?That means, for people with a mortgage, their repayments are higher.
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