The Reserve Bank of Australia (RBA) has hiked the official cash rate by another 25 basis points to 2.60%. How much will this rate hike increase your monthly mortgage repayments, and when will it kick in?
It’s hard to believe that at the beginning of May the cash rate was just 0.10%. Today it was increased for the sixth straight month to 2.60%.
The 25 basis point increase surprised many economists who were predicting a fifth straight 50 basis point rise.
However, it’s worth noting the cash rate hasn’t been this high since July 2013; almost ten years ago.
RBA Governor Philip Lowe said in a statement further increases were likely to be required over the period ahead.