And we’re not there yet… At the start of May, official interest rates were 0.1% – and 4 consecutive hikes later, they’re at 1.85% following yesterday’s 0.5% rise. It’s the fastest that rates have gone up since 1994, and it will add about $472 a month to repayments on a $500,000 loan. That’s a lot of money for many Aussies to find with electricity, gas, fuel, and food prices also going up thanks to the supply chain crash/bang out of the pandemic and Russia’s war on Ukraine. And that’s the main game, Reserve Bank Governor Philip Lowe says. “The board places a high priority on the return of inflation to the 2-3% range over time while keeping the economy on an even keel,” he said. Inflation is set to hit 7.75% in the December quarter… What happens next is not “pre-set”, Lowe says. “The size and timing of future interest rate increases will be guided by the incoming data and the board’s assessment of the outlook for inflation and the labour market.”