Australia Hikes Interest Rate Citing Higher Fuel Prices
The 8-1 vote unwinds last year’s cuts and could add about $91 a month to a $600,000 mortgage, Canstar said.
- On Tuesday, the Reserve Bank of Australia raised the cash rate target by 0.25 per cent to 4.35 per cent, marking the third consecutive increase this year amid elevated inflation.
- Surging automotive fuel prices sparked by the war in the Middle East drove headline inflation to 4.6 per cent in March, pushing the board to act as price pressures remained above the 2 per cent to 3 per cent target.
- Canstar data suggests a borrower with a $500,000 mortgage may pay $76 extra each month, while those owing $1 million can expect an additional $152 monthly following the hike.
- Mortgage Choice Newcastle broker Peter Byrne reported an uptick in clients fixing loans, fearing further rate rises now that the cash rate has returned to its 2024 peak.
46 Articles
46 Articles
In a context of increased inflationary pressures resulting from the war in the Middle East and the sharp rise in the price of oil, the Central Bank of Australia again raised the interest rate, equalling the peak reached in December 2024.The Reserve Bank of Australia (RBA) decision to raise the rates to 4.35%, was in line with the expectations of economists consulted by Reuters. Eight council members voted in favour of the rise, while one chose t…
The continent is heavily dependent on deliveries from Asia and high energy prices drive inflation up. Meanwhile, interest rates are back to pandemic levels.
Interest rates rise again as markets slip and mortgage pressure builds
The Reserve Bank has lifted interest rates for the third time this year, pushing the cash rate to 4.35 per cent, even as other major economies pause. In this episode, PWC Chief Economist Amy Lomas unpacks what’s driving the decision and what it signals for the months ahead. The ASX edged lower, falling 0.2 per cent, with Todd Hoare from LGT Wealth Management breaking down how investors reacted. And with borrowers facing rising costs, Sally Tinda…
The Australian central bank today decided to increase the official interest rate by 25 basis points to 4.35% in a context of intensification of inflationary pressures resulting from domestic factors and fuel rise. The decision, adopted by a majority of eight votes against one, represents the third consecutive increase and puts interest rates at unseen levels since the beginning of 2025, to a degree that is in line with market forecasts. The Bank…
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