They’ve done it again – the Reserve Bank raised interest rates by a quarter of one per cent to 6.25 per cent. The increase, coming after increases in May and August, brings official interest rates to their highest level since February 2001. For those holding variable-rate mortgages, the average repayment cost is likely to rise by about $33 a month. That’s for a typical 25-year loan of $200,000. Those with $300,000 mortgages can expect to pay about $50 more per month.
Businesses have warned that higher rates could chill spending, especially as we approach the vital Christmas shopping season.
The interest rate rise was almost universally expected after the latest Consumer Price Index data showed inflation pressures remain strong.
Consumer prices for the September quarter came in at 3.9 per cent higher than a year earlier….link to full story