Well, it had to happen sooner or later, although this was still somewhat unexpected by many. The Reserve Bank decided to lift variable interest rates by 0.25%. This will be quickly passed on to all borrowers by lenders.

While rising interest rates are never pleasant we must look at how low rates still really are - traditionally rates under 10% have been thought of as low in the past. This rise will largely be for shock value and to try and stop the economy going from recovery to overheated too quickly. A lot of economists are saying we could see another 0.25% before Christmas but only time will tell. I have attached the link to the RBA media release after the meeting in case you would like to read it. At least this is straight from the Reserve Bank without all the media hype.

http://rba.gov.au/MediaReleases/2009/mr-09-23.html