RBA raises interest rates 0.25%
As expected, the Reserve Bank Board has increased official interest rates by 0.25 percentage points to 6.25 per cent in November. This means home borrowers on variable rates will be paying an extra $16.52 a month in repayments on every $100,000 in outstanding borrowings.
The RBA statement announcing the rate rise said, “The decision was taken against a background of continued expansion in the global economy and further evidence that inflationary pressures had increased.”
The economic effects of the drought, which will lower the supply of rural produce, reduce farm incomes and affect the prices of some food, has been noted by the Board, who stated that these circumstances appear unlikely to significantly affect the medium-term outlook for inflation.