Tuesday, November 3, 2009
What goes down must come up again
THE Reserve Bank has delivered a second interest rate rise in as many months, as it attempts to moderate the economic recovery. The decision to lift the official cash rate by 25 basis points to 3.5 per cent is expected to add about $50 a month to the repayments of an average home mortgage. The increase, which followed the RBA's move to raise rates in October, was widely expected by financial markets and economists, especially after house prices rose by 4.2 per cent in the September quarter.