The Reserve Bank has lifted interest rates for the second month in a row, following its latest board meeting.

WHY DID THE BANK LIFT RATES?

* The bank’s nine-member board voted five to four to lift interest rates by 25 basis points to 4.1 per cent, the closest vote since the results were made public

*  The ongoing war in the in the Middle East, which has pushed up the price of petrol, was a key factor, as well as a rise in headline inflation in the year to January

* The bank’s board said the developments in the Middle East remained uncertain, but there were many scenarios where global and domestic inflation rose as a result

WHAT DOES THE DECISION MEAN FOR MORTGAGE HOLDERS?

* A 25 basis point increase in the cash rate means those with a $500,000 mortgage pay $79 more a month

* A $600,000 loan will mean $94 more per month in repayments

* A $750,000 mortgage will lead to $118 more per month

* Repayments will go up by $142 each month for those on a $900,000 mortgage

* A $1 million mortgage will lead to a $157 rise in monthly repayments

Andrew Brown
(Australian Associated Press)