The Wire

Some home-owners will have sweaty palms with news that the Reserve Bank has lifted official interest rates by a quarter of a percentage point, for the first time in 14 months. Further rates rises are also not ruled out. The Australian Democrats say the Treasurer should apologise for the rate rise, which will cost home owners about an extra $16 a month for every $100,000 they have borrowed. Executive Director of the New South Wales Federation of Housing Associations, Adam Farrer, says although it’s a small rate rise, it may affect people at the margins who have over-extended themselves to purchase a house. According to Mr Farrer, the rate rise will also affect people living in rental accommodation.