Due to inflation rising at its quickest rate since 1990, Australian borrowers will soon see another significant hike in interest rates.
According to new Australian Bureau of Statistics statistics, the consumer price index increased by 7.0% in the year up to July and 6.8% in the year up to August.
Since early in the first Gulf War in December 1990, this was the highest headline inflation rate.
Since inflation is much higher than the Reserve Bank of Australia’s goal range of 2 to 3 percent, borrowers may face another rate increase of 0.5 percentage points in October.
Five consecutive monthly interest rate increases have been handed out to borrowers since May, bringing the cash rate to a seven-year high of 2.35 percent.
The cash rate would reach a nine-year high of 2.85 percent if another 50 basis points were added to it next month.