Paying off a mortgage? Here’s how the RBA interest rate rise will affect your repayments

RBA governor Philip Lowe has warned borrowers should brace themselves for further hikes to bring inflation back into the target band. Photograph: Saeed Khan/AFP/Getty Images

The Reserve Bank of Australia has acted to lift interest rates from emergency lows at its 3 May meeting to curb soaring inflation hitting households.

It’s the first time in more than a decade that the cash rate target has been increased, reinforcing expectations property prices will fall, particularly in Sydney and Melbourne.