Mortgage holders have been slugged with another 0.25 percentage point interest rate rise.<\/p>\n
The Reserve Bank board has opted to keep pressure on borrowers as it grapples with still-high inflation.<\/p>\n
The quarterly consumer price index came in at seven per cent in the March quarter, well above the RBA’s two-three per cent target band.<\/p>\n
The March quarter result was followed by a higher-than-expected 6.8 per cent lift in the less reliable monthly index for April.<\/p>\n
The latest hike brings the cash rate to 4.1 per cent, its highest level since April 2012.<\/p>\n
The June lift marks the 12th increase since May last year when the central bank first started jacking up interest rates.<\/p>\n
RBA governor Philip Lowe also said some further tightening of monetary policy may be needed.<\/p>\n
“Some 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,” he said in a statement.<\/p>\n
“The board will continue to pay close attention to developments in the global economy, trends in household spending, and the outlook for inflation and the labour market.”<\/p>\n
In what most economists agreed was a close race between another hike and staying on hold, the RBA board was confronted with a mixed bag of economic data.<\/p>\n
While inflation remains high, interest rate hikes are clearly taking the sting out of economic activity, with consumer spending pulling back and the labour market starting to weaken.<\/p>\n
But wages growth has proved moderate and unlikely worried the RBA too much in its June decision.<\/p>\n
By\u00a0Poppy Johnston<\/b>\u00a0in Canberra<\/p>\n","protected":false},"excerpt":{"rendered":"
Mortgage holders have been slugged with another 0.25 percentage point interest rate rise. The Reserve Bank board has opted to keep pressure on borrowers as it grapples with still-high inflation. The quarterly consumer price index came in at seven per cent in the March quarter, well above the RBA’s two-three per cent target band. The […]<\/p>\n