Australia hikes rates to 18-year high to fight inflation
Three board members opposed the move as the RBA said inflation remains broadly based and could stay above target for another year.
- On Tuesday, November 3, the Reserve Bank of Australia lifted the cash rate 25 basis points to 4.85 per cent, marking the fifth increase this year and reaching an 18-year high.
- Reserve Bank Governor Michelle Bullock announced the hike to combat inflation, which rose 4.3 per cent in September; the bank noted additional increases may follow if necessary to control price pressures.
- Borrowers face an additional $100 in monthly repayments on a 30-year $600,000 mortgage despite a sharper-than-expected slowdown in the housing market across Australia.
- International pressures, including high oil prices and the AI construction boom, are intensifying inflationary risks while public demand growth is expected to reach 3.8 per cent by June next year.
- Bullock stated a recession for Australia is "not our base case at the moment," though the bank estimates the economy could shrink by $28 billion if consumer spending slows faster than forecast.
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RBA’s latest interest rate reaches a peak within almost two decades
RBA’s fifth interest rate rise this year has pushed it to its highest level in 18 years, adding more pressure to Australians’ budgets and housing affordability. The latest interest rate rise was pushed to 4.85 per cent, with Master Builders WA CEO Matt Moran saying that this will make house ownership even more difficult to achieve. He added that this will also further limit the construction of new homes, with productivity levels and the number o…
Rate hike hits Northern NSW where it hurts
Families, farmers and businesses across the New England-North West are bracing for another financial blow… after the Reserve Bank lifted interest rates to an 18-year high. The latest increase is raising concerns about flow on effects for regional communities.
RBA hikes interest rates amid clamour from Australian ruling elite for deeper austerity
The rate rise is part of a multi-pronged offensive against the working class, which is being hit with higher mortgage repayments and growing unemployment, as well as price rises and government austerity.
The Conversation
MASSIVE.NEWSRBA hikes interest rates to an 18-year high, warning inflation will hurt for another year
The RBA governor said the bank was trying to balance curbing inflation with not tipping the country into a recession – “if we can avoid it”.
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