RBA Hikes Cash Rate to 4.60% Amid Stubborn Inflation

The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.60%, its highest point since late-2011.

This decision comes as no surprise, given that core inflation remains stuck at 3.6% for the third month in a row, and oil and fuel prices continue to rise due to ongoing Middle East conflicts.

For homeowners, this means higher mortgage repayments. According to Canstar analysis, if a borrower's bank passes on today's hike in full, they could face an extra $114 in monthly repayments for a $750,000 loan.

However, savers may benefit from rising rates, with banks likely increasing term deposit rates. But with more cash rate hikes potentially on the way, locking in now could mean missing out on future rate bumps.