September 29, 2022
Reserve Bank announces interest rate increase for second straight month

“Today’s increase in interest rates by the Board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic,” Lowe said in his statement on Tuesday.

While inflation has significantly increased in Australia, it is expected to rise further before declining back towards the 2-3 per cent range next year, Lowe added.

“Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago,” he said.

“The past few years have seen a huge number of buyers flood into the market, with rock-bottom interest rates. Those days are certainly over,” head of consumer research at Finder Graham Cooke said.

» continue to 7NEWS.com.au