The Reserve Bank (RBA) has increased interest rates by 0.25 of a percent (25 basis points) taking the official cash rate to 3.25%. This is the first time rates have gone up since March 2008.
“The interest rate hike is a sign that Australia’s economy is healthy – so the more good news for the economy, the more bad news for interest rate rises,” says Domain.com.au blogger and property author Alex Brooks.
“The RBA has been using strong language to warn people about the risks of rates rising, and now they’ve gone ahead and raised rates from the emergency lows of 3 percent which was supposed to see us through last years’ economic emergency.
Interest rates have remained at stimulatory lows of 3.00% for most of 2009, but rising house prices and improving business confidence mean it’s time to put a stop to it.”