After 138 months, the Reserve Bank of Australia (RBA) has decided to increase the official cash rate by 25 basis points to 0.35% in response to increasing inflation pressures.
The latest inflation data showed Australia had recorded the highest quarterly and annual increase in more than two decades.
The last time the RBA increased interest rates was in November 2010. The official cash rate has been at a record low of 0.1% since November 2020.
Mortgage holders have been warned to prepare for a double rate rise. The cash rate is largely expected to jump by 1% by the end of this year and reach 1.25% next year.
Lenders are likely to lift mortgage rates in line with the cash rate increase, which may result in big changes to variable home loan repayments.
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