interest rate up highest in 11 years

(From the ABC website)

Interest rate hits 11-year high

Posted 10 minutes ago


Mortgage crunch time: Rates hit an 11-year high this morning (ABC News: Giulio Saggin)

The Reserve Bank has raised the official interest rate by 0.25 per cent to an 11-year high of 6.75 per cent.

The announcement is the sixth interest rate rise since the last election and is the first-ever rate rise this close to a federal election.

The decision is expected to be a defining point in the final two-and-a-half weeks of the election campaign.

Earlier, the Housing Industry Association warned that another rate rise will cripple Australian households who are already suffering under mortgage repayment stress.

Association chief economist Harley Dale said it would have undoubtedly been a difficult decision for the RBA to make.

"They're raising interest rates at a time when we have record low levels of housing affordability and a large number of households are financially in a stressful situation, in terms of meeting their mortgage repayments," he said.