RBA lifts cash rate to 4.35% - highest since 2011 - adding $76 to average mortgage
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The RBA has raised the cash rate target by 0.25% to 4.35%, the highest level since 2011, adding about $76 per month to mortgage repayments.
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The rate rise is the latest in a series since May 2022 when the cash rate was at a record low of 0.1%. Further hikes may happen depending on economic data.
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Financial markets expect more rate hikes in the coming months to curb inflation, though some economists argue the RBA should wait given signs of weakening economic growth.
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The higher interest rates will squeeze household budgets further, especially for lower income families, while benefiting some with savings and investment income.
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Mortgage rates are heading above 6% for many borrowers, putting over half of them under financial stress according to a survey.