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Treasurer Jim Chalmers says the RBA’s rate hike is “tough and heavy” and Australian homeowners will have to come up with an extra $75 a month for every $500,000 they borrow.

“These interest rate hikes are already having hard and serious consequences on many family budgets and on many mortgage payments,” Chalmers said during a press conference on Tuesday.

“Our economy is expected to soften next year and growth is expected to slow as a result of higher interest rates as well as the downturn in the global economy.”

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