For the sixth month in a row, the RBA has lifted interest rates but not as aggresive as previous months.
The RBA has decided to increase the cash rate by 0.25% to 2.6%, lower than the predicted 0.50% rise as predicted by three of the big four banks.
A 0.25 per cent hike would mean an extra $74 to the average monthly repayment on a $500,000 loan.
It would mean an extra $110 to monthly repayments on a $750,000 loan.
And an extra $147 to monthly repayments on a $1 million loan.
Today’s increase brings the cumulative additional monthly repayments since May for a typical mortgage holder to $687 for $500,000 borrowed.
Inflation is still the elephant in room, however it has eased to 6.8% in August in comparison to 7% in July.
Fuel, construction and produce are still the main contributors to inflation.
With the 'fuel concise holiday' coming to an end, fuel will be an even bigger contributor to inflation next month.