The Reserve Bank has lifted the cash rate for the fourth month in a row to 1.85 per cent, putting extra pressure on borrowers.
Reserve Bank hikes interest rates for fourth straight month
It’s not a shock, but it will sting.
That’s the verdict from Treasurer Jim Chalmers on the Reserve Bank board’s decision to hike the cash rate by 50 basis points to 1.85 per cent – its highest level in more than six years.
For someone with a $500,000 mortgage at the start of May, with 25 years remaining, the total increase across the four hikes would be $472 a month, according to RateCity.
RBA governor Philip Lowe said in a statement after the board meeting the rate rises in recent months were required “to bring inflation back to target and to create a more sustainable balance of demand and supply in the Australian economy”.