The Reserve Bank of Australia has raised its cash rate by 50 basis points to 1.35%, an amount expected by the market. Experts are also expecting the RBA to continue its aggressive cash rate hikes to hit 2% by the end of this year.
In Australia the cash rate is the rate that banks lend and borrow funds from each other.
The cash rate is the benchmark which banks use to set interest rates for borrowers.
This rate will impact the mortgage rate for home loans and increase mortgage repayments for homeowners.