Mortgage holders across Australia are in for more repayment pain after the Reserve Bank of Australia (RBA) chose to hike the nation’s official interest rate to 4.10 per cent.
“Inflation in Australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range,” RBA Governor Philip Lowe said in a statement.
The RBA’s target range for consumer price inflation is between 2 and 3 per cent.
“High inflation makes life difficult for people and damages the functioning of the economy. It erodes the value of savings, hurts family budgets, makes it harder for businesses to plan and invest, and worsens income inequality,” Dr Lowe said in his statement on June’s cash rate hike.
Dr Lowe foreshadowed further rate hikes, warning that “further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve”.
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Last month’s rate rise followed a pause in April, as the RBA accessed the impact of its series of rate rises on the economy.
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Mortgage holders across Australia are in for more repayment pain after the Reserve Bank of Australia (RBA) chose to hike the nation’s official interest rate to 4.10 per cent.
“Inflation in Australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range,” RBA Governor Philip Lowe said in a statement.
The RBA’s target range for consumer price inflation is between 2 and 3 per cent.
“High inflation makes life difficult for people and damages the functioning of the economy. It erodes the value of savings, hurts family budgets, makes it harder for businesses to plan and invest, and worsens income inequality,” Dr Lowe said in his statement on June’s cash rate hike.
Dr Lowe foreshadowed further rate hikes, warning that “further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve”.
.
Last month’s rate rise followed a pause in April, as the RBA accessed the impact of its series of rate rises on the economy.
.