Interest rate decision live updates: Reserve Bank expected to raise cash rate to contain inflation

0

The Federal Government is warning Australians to prepare for further interest rate hikes as the Reserve Bank is expected to raise the cash rate in an attempt to contain inflation.

Follow all the latest developments with our live blog.

Live updates

By Shiloh Payne

What is the current interest rate in Australia?

The RBA Cash Rate or Australian Interest Rate is currently 0.35% after rising 25 basis points from its all-time high of 0.10% in May.

Every month, with the exception of January, the RBA board meets to determine whether the official exchange rate will change.

The cash rate impacts the rate at which Australian banks can borrow from the Reserve Bank and other lenders.

When the interest rate is low, people with mortgages will pay less interest every month on the money they borrowed, so when rates go up, mortgages become more expensive.

This is unless you have a fixed rate mortgage where your rate stays the same for a certain amount of time.

By Shiloh Payne

RBA expected to raise interest rates

Interest rate hikes are expected to be announced today as the Reserve Bank of Australia attempts to bring inflation under control.

Economists predict rates will rise anywhere between 0.25% and 0.5 percent.

Just last month, interest rates were raised for the first time in more than 11 years, with a 25 basis point hike taking the cash rate target to 0.35 percent.

Hello I am Shiloh Payne and I will provide you with the latest updates when the Reserve Bank Board meets this afternoon. We are waiting for an announcement around 2:30 p.m.

So what does rising interest rates mean to you? What would you like to know? Leave us a comment so we can cover it all.

Share.

About Author

Comments are closed.