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Australia hikes rates to 18-year high to fight inflation
The move follows hotter inflation and would add about $100 a month to a $600,000 mortgage, economists said.
- 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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Total News Sources60
Leaning Left21Leaning Right4Center17Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 40%
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