The Reserve Bank has delivered a second consecutive monthly hit to mortgage holders, raising its official cash rate by a supersized half a percentage point, on top of last month’s quarter of a percentage point rise. Banks are passing it on in full to their variable rate customers.

For the average NSW mortgage of around $800,000, that's an extra $320 a month that needs to be found from the household budget. For the average Victorian mortgage of $650,000, it’s $260 extra a month.

And economists are warning of multiple rate hikes to come in the months ahead.

Today on Please Explain, economics correspondent Rachel Clun joins Jess Irivine to discuss the rate rise, and how the incoming Albanese government might respond to the cost of living squeeze in its upcoming October budget.

The Reserve Bank has delivered a second consecutive monthly hit to mortgage holders, raising its official cash rate by a supersized half a percentage point, on top of last month&rsquo;s quarter of a percentage point rise. Banks are passing it on in full to their variable rate customers.
For the average NSW mortgage of around $800,000, that's an extra $320 a month that needs to be found from the household budget. For the average Victorian mortgage of $650,000, it&rsquo;s $260 extra a month.
And economists are warning of multiple rate hikes to come in the months ahead.
Today on&nbsp;Please Explain, economics correspondent Rachel Clun joins Jess Irivine to discuss the rate rise, and how the incoming Albanese government might respond to the cost of living squeeze in its upcoming October budget.

The Morning Edition (formerly Please Explain) brings you the story behind the story with the best journalists in Australia. Join host Samantha Selinger-Morris from the newsrooms of The Sydney Morning Herald and The Age, weekdays from 5am.

The Morning Edition (formerly Please Explain) brings you the story behind the story with the best journalists in Australia. Join host Samantha Selinger-Morris from the newsrooms of The Sydney Morning Herald and The Age, weekdays from 5am.

The Morning Edition

The Morning Edition brings you the story behind the story with the best journalists in Australia. Join host Samantha Selinger-Morris from the newsrooms of The Sydney Morning Herald and The Age, weekdays from 5am.

The Morning Edition brings you the story behind the story with the best journalists in Australia. Join host Samantha Selinger-Morris from the newsrooms of The Sydney Morning Herald and The Age, weekdays from 5am.

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