The value of mortgages on floating rates continues to skyrocket as seen in this graph. In September there was $67 billion of mortgage debt on floating, compared to $37 billion a year ago - an 81% increase.
The Reserve Bank of Australia (RBA) Board also unexpectedly hiked its cash rate on Tuesday by 25 basis points to 4.75%.
A hike was not forecast by most till December, but the Board believed the time had come for members to be "prudent", and for them to move "early".
| « OCR kept steady, but tightening still likely | Flurry of cuts to two-year rates » |
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