Gold Coast homeowners have been stung again, with the Reserve Bank lifting the official cash rate by another 25 basis points to 4.6 per cent.
It’s the fourth hike this year, with interest rates now at their highest level since October 2011.
In its statement, the RBA board said that inflation remains elevated and some of the upside risks that it had flagged in August are materialising.
“The conflict in the Middle East has broadened, and global energy prices are now much higher than had been assumed in the August forecasts.
“Liaison indicates that firms are experiencing cost pressures and are either increasing the prices of their goods and services or looking to do so.
Today’s decision will add an extra $91 a month to repayments on a $600,000 mortgage.
With all four rate hikes this year, borrowers are now paying $364 more a month on a $600,000 mortgage.
The move to increase rates was made unanimously by the RBA board.
It also warned it won’t hesitate to lift rates further if needed.
“The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed.”
Many experts are predicting another two more interest rate increases, with the next one forecast for Melbourne Cup Day.
More to come.
