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The Board of the Reserve Bank of Australia this afternoon has raised its cash rate by 25 basis points to 4.5%, the third straight month it has done so and the sixth increase since October.

The interest rate hike takes interest rates back their highest level since the end of 2008.

The hike was widely expected, especially as the announcement was only one day after a report indicated property
Australia's jobless rate eased slightly in December, with the economy adding more than three times as many jobs as economists had forecast.

The nation's unemployment rate, on a seasonally-adjusted basis, fell 0.1% to 5.5% from a revised 5.6% in November, the Australian Bureau of Statistics said Thursday.

The number of people employed in December climbed by 35,200 to a seasonally adjusted 1
How interest rates affect you, whether you are a renter, owner or investor in the Australian property market.

With the current state of the economy, most are placing their bets firmly on more interest rate slashings for 2009.

Interest rates have a direct impact on everyone's finances, whether it's their mortgage payments, credit card bills or savings account. Understand where you fit in the