Australia's central bank raised interest rates, increasing mortgage payments for variable-rate borrowers.

The Reserve Bank of Australia raised its cash rate by 0.25 percentage points to 4.1%, prompting banks to increase variable mortgage rates. Homeowners with variable-rate loans can expect monthly repayments to rise, with estimates suggesting an average increase of $50 to $70 per month depending on loan size and remaining term. Fixed-rate borrowers are unaffected unless their term ends. The move follows rising inflation and stronger-than-expected economic growth, signaling potential further rate hikes in the coming months.