Surprise rate rise ahead of Federal Budget

After a pause last month following 10 straight interest rate hikes since May last year, the Reserve Bank has again lifted the cash rate.

'The budget will need to bring some much-needed relief to tax payers' says Opposition Finance Spokesman Angus Taylor . Source: AAP / Squirrel_photos from Pixabay

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.

 

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