The Reserve Bank of Australia today officially lifted interest rates for the third straight month. The increase of .25% to 4.5% means interest rates are now at their highest since the end of 2008. The move was tipped by a majority of economists after surges in consumer price inflation and house prices in the March quarter.
For mortgage holders on variable lending rates, today’s 25-basis-point increase will add about $46 to the average monthly payment for a typical 25-year, $300,000 home loan, if it is passed on in full by the commercial banks.
The next interest rate movement will be announced early next month.