RBA's rate rise set to have broad impact

The Reserve Bank has raised interest rates by 25 basis points, from a historic low 0.1 per cent, to 0.35 per cent.

Reserve Bank of Australia Governor Phillip Lowe says the rise is a mark of the current economic conditions, low unemployment and higher inflation. Source: AAP

Highlights

• The last rate rise during an election campaign was in 2007
• The 0.25 % rate hike will add $65 per month to the average $500,00 loan
• The interest rate rise will affect the cost of mortgages, and rents and both major parties are promising big housing support packages.

The cash rate now sits at 0.35%, up from 0.1%, but the Reserve Bank predicts it will go higher.

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