RBA opts for another rate rise

The Reserve Bank of Australia has cited recent data that indicates continued inflationary pressures when announcing its decision to increase interest rates today. The official cash rate now stands at 7 per cent and is at its highest since November 1996. The RBA warned that it would remain on alert to see what the combined impact would be on inflation of tightening credit standards, rate rises by the banks independent of official cash rate movements, plus this latest offical rate movement. Assuming that banks pass on the full rate increase borrowers with a $300,000 loan will be paying an extra $50 per month in interest.

Source: InfoChoice