The Reserve Bank of Australia has lifted the cash rate to 4.6 per cent, the highest in 15 years. Underlying inflation is still above the bank’s target band.
It is the fourth increase. On an average $730,000 mortgage, repayments are now about $480 a month higher than in January — more than $5,000 a year.
AMP chief economist Shane Oliver put the chance of a recession at 35 per cent. He said two or three more hikes — one by year’s end and another early next year — would risk overkill in an economy that is already slowing.
Treasurer Jim Chalmers has blamed dear oil and the Middle East war for sticky prices. UNSW professor Richard Holden said government spending is also feeding inflation.
Household spending was flat in August but still 6.8 per cent higher than a year earlier.
Related Bouris Calls Chalmers’ Inflation Line “Greatest Lot of Crap”
The post Fourth Rate Rise Pushes Typical Mortgage Up $480 a Month appeared first on Greek City Times.