Reserve Bank hikes cash rate by 25 basis points

RateCity says the rise will mean an extra $908 a month in total for the average borrower with a $500,000 loan, since the start of the hikes last May.

For a $750,000 loan, the rate increase will mean an extra $114 a month or $1362 since the RBA started lifting rates in May.

It is the ninth rise in as many board meetings, taking the cash rate to its highest level since September 2012.

The RBA is seeking to use rate rises to put a lid on inflation, which at 7.8 per cent is the highest it has been since 1990.

– AAP