Key Points
- The Bank has lifted rates by 25 basis points to 3.85%.
- The economic pain is set to be felt by many more borrowers whose fixed interest rate loans are due to end in the coming months.
- Australian charities like the Smith Family have found 1.2 million Australians and their children are also finding it hard to deal with current cost-of-living pressures.
With inflation sitting at 7% after dropping slightly from a high of 7.8%, the Reserve Bank has warned it could lift rates further unless inflation comes down to acceptable levels.
