22 February 2010
As was expected the Reserve Bank of Australia (RBA) increased interest rates by 0.25% to make the cash rate 4.00%.
With most banks looking as though they will pass on the same sized increase this time, the increase in monthly repayments per $100,000 borrowed will be just over $15 per month.
For those with an average mortgage of around $300,000 this mean finding an extra $46 per month.
The RBA reflected that Australia had a mild downturn in comparison to many countries in 2009 and that many asian countries were still growing strongly. They justified the rate rise acknowledging inflation had risen, the risk of a serious monetary contraction had been avoided and because current interest rates were much lower than normal.