Reserve Bank hikes its interest rate

THE Reserve Bank board has increased its official interest rate from 3.25 per cent to 3.5 per cent.

It is the fourth time in a row the bank has altered rates on Melbourne Cup day.

Less than 15 minutes later, ANZ announced it had also raised its standard variable home loan rate by 0.25 per cent.

And by late afternoon Commonwealth Bank, NAB and Westpac had all increased their standard variable home loan rate by the same amount.

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