With the new interest rate, the owner of a 30-year $500,000 loan will need to pay an additional $81 per month on this loan. Compared to April 2022, when the interest rate was only 0.1%, the debt repayment on the above loan has increased by $969 per month or $11,628 per year.

RBA Governor Philip Lowe said that “global inflation remains high” and that the rate hike was aimed at stabilizing energy prices, addressing supply chain issues and tightening monetary policy. However, he stressed that “it will be some time before inflation returns to the 2-3% target.”

Governor Lowe stressed that the RBA is closely monitoring developments in the global economy , household spending, wages and prices to make timely adjustments to monetary policy. However, Mr. Lowe revealed that the RBA Board expects to continue to increase interest rates in the coming months, with the size and timing determined by actual economic data and the RBA's assessment of the outlook for inflation and the labor market.

The RBA governor stressed that the bank remains committed to returning inflation to its 2-3% target and will do what is necessary to achieve that target. The RBA also forecast that there could be a number of rate hikes in the coming months to bring inflation under control, while saying that this period of high inflation is only temporary.

RBA Governor Philip Lowe said that inflation in Australia in the fourth quarter of 2022 reached 7.8%, the highest level since 1990. Inflation in many countries around the world is also still high. Although countries have introduced some measures to reduce energy costs, solve some supply chain problems and tighten monetary policy, it will take time before inflation returns to target.

Mr. Philip Lowe said that the RBA forecasts Australia's economic growth will be moderate at about 1.5% in 2023 and 2024./.

H.Ha (According to Reuters, CNBC)