The Reserve Bank of Australia has today raised the official cash rate from 4 per cent to 4.25 per cent and says there is more to come.
In a media release following the rise, the RBA said “Interest rates to most borrowers nonetheless have been somewhat lower than average. The Board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.”
Interest payments are still higher today than in 1989 due to high household debt levels. (1977 to Dec 2009)
» Statement by Glenn Stevens, Governor: Monetary Policy Decision – The Reserve Bank of Australia, 6th April 2010.