RBA hikes rates again, rising above 4 per cent | ABC News

The Reserve Bank has lifted its official interest rate to 4.1 per cent, a level not seen since early 2012. ANZ Senior Economist Adelaide Timbrell joins finance presenter Alicia Barry for more on the RBA's decision. Subscribe: http://ab.co/1svxLVE Read more here: https://www.abc.net.au/news/2023-06-06/interest-rates-rise-june-2023-rba-philip-lowe/102445526

The bank's board decided to lift the cash rate target by 0.25 of a percentage point for the second month in a row, amid concerns inflation is taking too long to come down.

The most recent monthly consumer price index from the Australian Bureau of Statistics showed prices rose 6.8 per cent over the year to April, up from the March reading due to some statistical noise caused by last year's temporary fuel excise cut.

Unlike last month, today's move was not a complete surprise, with markets pricing in around a 35 per cent chance of a rate rise in June and economist forecasts split.

The increase will add around $76 a month to the repayments on a $500,000 loan, and twice that on a million-dollar 25-year mortgage.

In total, someone with $500,000 owing on their home loan has seen their monthly repayments jump by around $1,134 a month since the RBA started lifting rates from a record low of 0.1 per cent in May last year.

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