Grim Reason RBA Given Rate Hike Green Light
Economists expect a 25-basis-point increase as inflation stays elevated and consumer confidence sinks to record lows, with 297,000 borrowers at risk.
- On Tuesday, the Reserve Bank of Australia board is expected to lift the cash rate by 25 basis points to 4.35 per cent, following a surge in household spending during March.
- Australian Bureau of Statistics data shows household spending jumped 1.6 per cent in March, driven by rising oil prices stemming from the US-Iran war that has fueled broader inflation.
- A 0.25 percentage point hike will increase monthly mortgage repayments by $91 on a $600,000 loan, while a Finder survey shows 297,000 mortgagors unable to meet repayments if rates rise further.
- Critics warn the hike could trigger a "recession we don't have to have," while the ANZ-Roy Morgan Consumer Confidence Rating fell to 67.8, marking record low consumer sentiment.
- RBA governor Michele Bullock has emphasized controlling inflation, though economists forecast further rate pain as pressure on household budgets is "unlikely to ease" in coming months.
14 Articles
14 Articles
Spectator Australia
Politics, Policy, Political NewsLabor’s spending left the RBA with no option
Australia’s inflation problem is back, and the RBA has responded with three interest-rate hikes in 2026 alone, lifting the cash rate to 4.35 per cent today. Headline CPI hit 4.6 per cent in the 12 months to March 2026, and underlying measures remain well above the RBA’s 2-3 per cent target. Mortgage holders are once again feeling the squeeze, and many families are struggling with repayments. The government pointed to the war in Ukraine in 2022 a…
Interest rates will rise today, economists say in near-full agreement
The economists of ten major banks have all but confirmed the RBA will raise interest rates again today following last month's inflation spike. Meanwhile, the 2026 budget is coming into focus, with an 'earned income offset' and the scrapping of an EV tax discount the latest features to be revealed. The post Interest rates will rise today, economists say in near-full agreement appeared first on Crikey.
Sydney Morning Herald
RBA expected to lift interest rates today
The Reserve Bank is expected to deliver another interest rates hike today.
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