Central banks like the Reserve Bank of Australia use interest rate increases as their primary monetary policy tool to combat inflation, which directly impacts mortgage holders by increasing their repayment amounts, creating economic uncertainty for borrowers.
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Is Another Rate Rise Coming?Añadido:
The Reserve Bank has increased the cash rate another 0.25% and we're expecting at least two more rate rises this year.
This will push Australians into uncharted territory where mortgage holders are going to be freaking out because their average repayments are going up and up and there's literally no end in sight. When will they stop these rate rises? Especially with the government continuing to spend, the RBA has only one tool to use and that's to continue to push rate rises to try and dampen inflation in Australia's economy.
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