RBA raises cash rate as banks pass on hike

The Reserve Bank of Australia has raised the official cash rate by 0.25% to 3.85%, marking the first rate hike in over two years. All four major banks quickly announced they will pass on the increase to mortgage holders, with a $600,000 loan seeing monthly repayments rise by $90 and a million-dollar debt increasing by $150. The RBA indicates inflation will remain above target for at least another year, while savings account rate increases remain under review by major banks.

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