Mortgage Interest Rates

RBA increases interest rates

The Reserve Bank of Australia raised its key cash rate by 25 basis points to 4.5 percent today. It signalled the first stage of its tightening cycle was over after six hikes in eight months.

Given the strength of the economy many, investors and analysts thought it was only a matter of time before the Reserve Bank of Australia (RBA) would have to take rates further.

In a statement after the banks monthly meeting, RBA Governor Glenn Stevens said that lending rates were now around average and the rise from 3 percent since October was a significant adjustment.