The Reserve Bank of Australia has announced their decision to increase Interest Rates by 0.25% p.a. for the 3rd month in a row. This is the first time that interest rates have increased over 3 consequecutive months, however, the RBA believes this is a necessary step to ensure inflation is kept under control.
In other words … A small increase in interest rates now will assist to prevent borrowers from having to incur much larger interest rate rises in the future.
