Interest rates hit a 12-year high as the Reserve Bank resumes hiking, with a 0.25 percentage point rise taking the cash rate to 4.35 per cent.
After keeping rates on hold for the past four meetings, the Reserve Bank has resumed hiking its cash rate target, with a quarter of a percentage point increase taking the benchmark interest rate to 4.35 per cent.The rate rise will add around $76 a month to repayments on a $500,000 home loanIt is the latest in a steep string of hikes that have taken the cash rate from a record low 0.1 per cent at the start of May 2022 to the highest level since November 2011.
However RateCity's Sally Tindall said the average mortgage customer had softened the blows to date by refinancing their loan to get a more competitive rate. "If you're an owner-occupier with a good track record of paying down your debt, you should be aiming for a rate under 6 per cent."The move was widely expected by economists and financial markets, which had priced in roughly a two-thirds chance of rates going up today.
"The grim reality is the goods or services that are still recording high levels of inflation are not under any demand pressure, therefore this cash rate rise will have little impact on the prices of rents, fuel, insurance and utilities," she argued.
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