Millions of households have received another blow with the Reserve Bank delivering its third straight interest rate rise.
The RBA has increased the official cash rate by 50 basis points, taking it to 1.35 per cent.
That will mean an extra $151 a month in repayments on a 30-year, $500,000 mortgage.
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In a statement, RBA Governor Philip Lowe warns there are more rate increases to come.
“The Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead. The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market,” Dr Lowe said.
“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.”
All eyes are now on the major banks but it’s expected they will once again pass on the rate hike in full.
More to come.