Interest rate rise again
Today, interest rate rise again for another 0.25%. the australia reserve bank said they increase the official rates to 7.25% to reduce the inflation. It is the highest interest rate in almost last 12 years. Some analysts said that the bank and other homeloan lenders could increase mortgage rates by between an extra 10 to 20 basis points which would add 0.10 to 0.20 per cent on what the Reserve bank has pushed through today. For a 25 years, $200,000 mortgage, today rise increases repayments to about $34 /month. And Those people on a $300,000 mortgage over the same period would have to pay an extra $57 in repayments.
Following the interest rate rise, the Australian dollar aus$ sank more than three quarters of a US cent after the announcement on expectations that the softening economy has eased some of the pressure on further rate rise. The Australian dollar was trading at 93.80 US cents shortly before today’s announcement, and then down to as low as 93 US cents.