Reserve Bank lifts interest rates to 3.25 per cent

THE Reserve Bank has lifted its official interest rate by 25 basis points to 3.25 per cent.

This marks the first time since March 2008 that the central bank has lifted rates.

In response, Australia’s big four banks all said they are reviewing their standard variable mortgage interest rates.

A 25 basis point increase to the official rate adds about $45 a month to a $300,000, 25-year home, according to comparison website RateCity.

Read more about interest rates at news.com.au.