RBA Hikes Interest Rates Amid Inflation Concerns

The Reserve Bank of Australia (RBA) has raised its benchmark borrowing rate to 4.6 per cent, its highest in nearly 15 years.

This is the fourth rate rise so far in 2026, and it means that the average mortgage holder will now pay about $450 more a month than they did in February.

RBA Governor Michele Bullock acknowledged that this decision will be difficult for households with a mortgage and businesses with loans, but stressed that high inflation hurts all Australians.

The RBA's preferred measure of inflation, trimmed mean, is well above its 2-3 per cent target range at 3.6 per cent.