00:02More pain for Australian borrowers.
00:05Ultimately, with inflation that is already too high,
00:08the board decided raising the cash rate was the right call.
00:12Inflation above target and a war in the Middle East,
00:14helping to spark a fresh rate rise.
00:16We've got an inflation challenge in our economy already
00:19and developments in the Middle East are making that worse.
00:23For the second months in a row,
00:25the RBA has lifted the cash rate by a quarter of a percentage point
00:28in a split vote 5-4, taking it up to 4.1%,
00:32back to where it was a year ago.
00:34If lenders pass on the rate hike in full,
00:37homeowners with a $750,000 mortgage
00:39will see their minimum repayment rise by about $113 a month,
00:44which means they're now paying $226 more on their home loan
00:48since the RBA began lifting rates last month.
00:51For a million-dollar mortgage, repayments will increase by $151,
00:56meaning they'll be paying more than $300 extra.
01:01In breaking news, the Reserve Bank has increased the cash rate...
01:05It's certainly not the news Anna Sree wanted to hear.
01:08I don't have a lot of, like, non-regular expenses that are,
01:13I would say, like, discretionary spending, really.
01:15It's probably just food that I could cut.
01:18The RBA governor was tight-lipped on what might happen next.
01:21If we don't see the numbers indicating that we're going to see a slowing
01:25in underlying inflation, let's assume that it stays at 3.5%,
01:29then, unfortunately, we're going to see another rate rise from here.
01:33Would you be prepared to put Australia into recession
01:35if that's what it takes to bring inflation much lower?
01:38We don't want to have a recession.
01:41But if it's hard to get inflation down,
01:44then, you know, we're going to have to deal with that.
01:47Australia now has higher interest rates than many other economies
01:50like the US, UK and Canada.
01:52But it doesn't seem to be working
01:54because inflation here is also higher than in those countries.
01:57So that suggests even more rate hikes might be needed.
02:01Balancing that pain against the risk of recession, which no one wants.
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