BREAKING: The Reserve Bank returned to a “business as usual” 0.25 percentage point increase in the official interest rate on Tuesday, as it slowed rate rises to assess the economic outlook.
The average borrower owing $500,000 to the bank will pay an additional $74 a month after Tuesday’s rise, taking their total monthly repayments since the RBA began tightening monetary policy in May to $687.
It will add about $110 to monthly repayments on a typical $750,000 mortgage, taking the total monthly repayment increase to $1030.For a typical borrower with a $1 million mortgage, an additional 0.25 percentage points would add $147, pushing the increase on monthly repayments since May to $1374.the highest level since mid-1990, driven by soaring building costs, global oil prices and a marked uptick in the price of fresh fruit and vegetables.
The pace of price rises dipped slightly in August to 6.8 per cent as petrol prices eased, however the reprieve will likely be temporary as the soaring cost of energy across the east coast begins hitting households.“Inflation numbers with a six in front of them or even a seven are incredibly concerning,” Dr Chalmers said on Sunday, adding that the government “expected the inflation challenge to get a bit worse before it gets better”.
Despite Australia’s 48-year low jobless rate of 3.5 per cent and persistent consumer spending, economists are increasingly concerned turbulent conditions overseas will make it harder for Australia to avoid a downturn.
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