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The Reserve Bank has raised interest rates for the fourth month in a row, raising its target rate by half a percentage point. Key points: RBA has raised interest rates by 0.5 percentage point The target cash rate has now increased by 1.75 percentage points since early May to 1.85 percent A cash rate increase since early May will add about $472 per month to a $500,000 loan payment The RBA has now raised its benchmark interest rate by 1.75 percentage points since the first rate hike in May, with the target rate at 1.85 percent. In his post-meeting statement, Reserve Bank Governor Philip Lowe said the latest rate hike is unlikely to be the last this year. “The board expects to take further steps in the process of normalizing monetary conditions over the next few months, but not on a predetermined path,” he said. “The size and timing of future rate hikes will be guided by incoming data and the board’s assessment of the inflation and labor market outlook. “The Board is committed to doing wh

Woolworths and Coles are raising milk prices and there may be more price increases to come due to the expected decline in national supply. Key points: Farmers get record price of milk They say aggressive low prices are pushing farmers out of the industry, which has led to higher demand now Other factors come into play, including lower output from major overseas producers such as New Zealand, the EU and the US But relieved dairy farmers say supermarkets have caused these sudden price hikes on themselves. Earlier this week Coles said it would increase home-brand milk by 25 cents, from $1.35 to $1.60 per litre. Today Woolworths matched those gains, blaming higher supply chain costs, including payments to farmers. “Farm-level prices paid to dairy farmers have increased significantly this season and as a result we are paying more to our own brand suppliers for milk,” a spokesperson said. The spokesperson said “processors – not retailers – set the farm gate price paid to dairy farmers” and s

Central banks in New Zealand and Korea have pushed ahead with further super-sized rate hikes as they seek to tame rampant inflation. Key points: Both the RBNZ and the Bank of Korea have raised interest rates by another 50 basis points New Zealand’s benchmark interest rate is now 2.5 percent and Korea’s 2.25 percent Many economists now expect that many central banks will halt rate hikes by the end of the year Both have been at the forefront of global central bank moves to dampen inflation, lifting interest rates from pandemic lows in the second half of 2021, months ahead of most other central banks, including the Reserve Bank of Australia (RBA), which was the first to move. enter. Possible. The Reserve Bank of New Zealand (RBNZ) increased its benchmark overnight cash rate target from 2 to 2.5 percent today, while the Bank of Korea (BoK) also raised interest rates by 50 basis points this morning to 2.25 percent. It is the third consecutive meeting that New Zealand’s central bank has rai