The Reserve Bank of Australia has met for its second cash rate decision of 2023, announcing a 25 basis point increase.
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This takes the cash rate to 3.6 per cent - its highest level since May 2012.
The central bank has already lifted interest rates from historic lows of 0.1 per cent in April last year to 3.35 per cent in February, 2023.
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The means more bad news for one in 10 mortgage holders who are already struggling to meet repayments, according to a new survey.
A survey by comparison website Canstar found nearly 70 per cent of renters and mortgage holders were struggling financially due to cost of living pressures and higher interest rates, with 10 per cent of those 3100 surveyed already late with a payment.
For the average variable rate mortgage holder with a $500,000 loan and 30 years remaining, another cash rate hike will add $1051 to monthly repayments compared to April 2022.
If the cash rate peaks at 4.1 per cent, as some economists are predicting, monthly repayments will swell by $1217 compared to April last year.
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The Canstar research also revealed fading confidence in the Reserve Bank's ability to calm inflation by rising interest rates.
More than half said higher interest rates were not the solution to elevated inflation and believed people would continue to spend.