Borrowers brace for higher home loan repayments as RBA hikes rates | The Business | ABC NEWS

Описание: The Reserve Bank has lifted interest rates by 0.25 percentage points, its first increase in more than two years. This brings the new cash rate to 3.85 per cent. It's also a sudden U-turn for the RBA, which last cut interest rates five months ago. RBA governor Michele Bullock says the rate hike was unavoidable as inflation in Australia remains too high. The RBA has revised up its forecasts for underlying inflation and doesn't see it back in the target range of 2 to 3 per cent until June 2027. Independent economist Saul Eslake said the RBA's forecasts assume the cash rate will get to 4.2% by the second half of this year, which is line with market forecasts and implies at least one more increase in interest rates after this one.

It's not great news for the Treasurer, who's been accused of stoking inflation with too much government spending. Jim Chalmers said government spending wasn't mentioned in the RBA's monetary policy decision statement, which he said pointed to private demand driving inflation.

Canstar's Sally Tindall is urging home borrowers to take a closer look at their mortgage repayments. She says the average variable owner-occupier will be on a rate of around 5.77%. But a competitive rate is likely to be around 5.5%.
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