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Australia is in danger of entering recession and the Reserve Bank is not helping matters, warns ninemsn Money commentator Mark Westfield.
The latest interest rate hike has dealt yet another blow to housing affordability and pushed even more people into housing stress.
In March the RBA increased the cash rate by a quarter of a percentage point to 7.25 percent the 12th consecutive rise.
As expected the Reserve Bank has increased the cash rate by a quarter of a percentage point this afternoon the 12th consecutive rise since 2001.
With one week until the Reserve Bank of Australia (RBA) meets again to determine the official cash rate, all signs are pointing to another interest rate rise.
Adelaide was the real surprise package, emerging as the standout performer with house prices jumping 23.63% to $395,587 in the year to November 30, according to RPData.
The Rudd Government's package of measures to make it easier to switch banks has been welcomed by many of those familiar with the red tape of trying to do just that. But how much can the government interfere with the operations of the private banking sector?
With interest rates on home loans close to 10 percent, how about a home loan that has a zero interest rate?
The Reserve Bank of Australia lifted the cash rate 25 basis points this afternoon to 7.0 per cent in one of the best-telegraphed rate rises in years. The cash rate is at its highest since 1996 and is expected to continue to rise, bringing pain to debt-laden house owners, renters and consumers.
Today's interest rate rise will put more stress on home owners in Australia who are struggling to meet mortgage repayments, but who is suffering the most?