Why the RBA raised interest rates on Cup Day for the fifth time | The Business

Summary

Financial markets were betting on an interest rate rise on Melbourne Cup Day and the RBA board delivered. The central bank raised rates for a fifth time this year by a quarter of a percentage point, taking the cash rate to 4.85 per cent - its highest level in 18 years. If lenders pass on the rate hike on in full, borrowers with a $750,000 mortgage, will see their repayments rise by $115 a month. After five hikes, they are now paying $570 more a month than they were before the RBA began raising rates in February. This latest hike may not be the last. The RBA says it expects inflation to stay…

Description from ABC News (Australia).