The rates spotlight now falls on commercial banks to see which if any of them raise borrowing rates by more than the 25 basis point move by the RBA.
Such an increase alone would add about $46 to the typical repayment on a $300,000 loan over 25 years.
Those typical mortgage holders are already forking out an average of about $300 a month more in repayments since October 2009 when the RBA began lifting interest rates.
In recent weeks, the heads of several of the largest banks have warned that bank profits will be squeezed unless they are able to pass on higher funding costs, independently of the RBA’s actions.
Last week, ANZ and NAB – two of Australia’s four largest banks – reported record full-year profits of almost $10 billion between them.