Interest rates rise: RBA lifts official cash rate by 50 basis points to 1.35%

The widely anticipated Reserve Bank increase compounds building economic pressures on Australian households, including high petrol and grocery prices

• Homeowners warned to expect at least two further rate hikes as repayments soar
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Australia's central bank has triggered a third interest rate hike in as many months, imposing a 50 basis point increase which lifts the official cash rate from 0.85% to 1.35%.

The widely anticipated increase was unveiled on Tuesday afternoon and it compounds price pressures building on Australian households, including petrol prices north of $2 a litre despite a temporary reduction in fuel excise, and the looming negative impact of renewed flooding on fresh food prices.

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