The RBA raised interest rates by another quarter of a percent this month. This is the third consecutive interest rate rise. The latest increase adds an additional $46.71 per month on the average $300,000 mortgage. The RBA does not meet in January, however, economists believe there will be another rise when they meet again in February. It is likely that these rises will continue in increments of 25 basis points throughout 2010.

This decision to raise interest rates is on the back of our economy experiencing only a mild downturn. Unemployment is still relatively low at below 6 percent, when it was predicted to hit 8 percent. There is plenty of consumer and business confidence providing an economic recovery.