Right on cue, the Reserve Bank raised interest rates for the 7th time this year. This time, it’s a 0.25% hike, bringing the country’s cash rate to 2.85% – a smaller increase than some predicted. It does mean more pain for mortgage holders, though… Those with a $500,000 loan will soon be paying about $800/month more than they were in April when interest rates started marching upwards. It’s also unlikely to be the last one we see – RBA boss Philip Lowe told borrowers to brace for more, saying the central bank “will do whatever is necessary” to bring inflation down. On that topic, there’s more unsettling news… The Reserve Bank reckons inflation will now hit 8% this year, which is higher than previously expected and way beyond the 2-3% target.