US EditionMore Pain for Mortgage Holders as Rates Rise Again
The Reserve Bank of Australia increased the cash rate by 25 basis points with a narrow 5-4 vote due to persistent inflation and Middle East conflict-driven fuel price rises.
- On Tuesday, the Reserve Bank of Australia raised the cash rate from 3.85 per cent to 4.1 per cent, following forecasts from big banks and most economists.
- Amid rising headline inflation and overseas conflict, the board cited higher petrol prices and uncertainty, noting headline inflation rose in the year to January and the war in the Middle East increased inflationary pressure.
- Australian mortgage holders will face higher monthly costs, with a typical $600,000 loan rising about $90 each month after the cash rate increase, according to the Reserve Bank. Borrowers on various mortgage sizes will see repayments increase significantly, adding pressure to household budgets.
- Following the RBA decision, politicians warned households would face tighter budgets and reduced discretionary spending as Treasurer Jim Chalmers cited Middle East instability and Opposition Leader Angus Taylor blamed 'homegrown inflation'.
- The bank's narrow split reveals deep uncertainty inside the RBA as the nine-member board voted five to four, and Kylie Purcell said it had 'little choice' amid inflation drivers: energy prices and end of energy rebates.
36 Articles
36 Articles
Painful as it is, the rate rise was the easy part. Trump has turned economic policy into a lottery
While the RBA's decision to lift interest rates was all about inflation before the Iranian war started, its task from here on is immensely difficult. There's no rulebook for economic decisions in an era of a Mad King. The post Painful as it is, the rate rise was the easy part. Trump has turned economic policy into a lottery appeared first on Crikey.
Chance of RBA interest rate hike in May drops to 40pc, ASX likely to rise
The likelihood of a follow-up interest rate hike in May may has fallen substantially after the Reserve Bank's 5-4 vote in favour of yesterday's rate increase — the slimmest of majorities. Follow live.
Big four banks pass on rate rises to mortgage holders after RBA decision
All of the big four banks have immediately passed on to mortgage holders the Reserve Bank of Australia's increase to the cash rate of 0.25 per cent.Just hours after the decision was announced by RBA Governor Michelle Bullock, the Commonwealth Bank, National Australia Bank, ANZ and Westpac told their customers they would be passing on the increase.NAB group executive Ana Marinkovic said the bank recognised the added pressure it would add to hous…
Australia’s Reserve Bank Delivers 2nd Straight Interest Rate Rise
The Reserve Bank of Australia (RBA) has raised interest rates for the second consecutive month, citing mounting inflation risks amplified by escalating conflict in the Middle East. In a narrow five–four decision on March 17, the central bank’s monetary policy board raised the cash rate by 25 basis points to 4.1 percent, after a similar increase in February. This is the first series of rate increases since December 2024, when the RBA first began …
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