RBA Hikes Interest Rates to 15-Year High
The Reserve Bank of Australia (RBA) has raised interest rates to their highest level in 15 years. The central bank's board voted unanimously to lift the cash rate by 25 basis points to 4.6 per cent, exceeding expectations for a hike.
Markets had been pricing in another rate rise, driven by hotter-than-expected inflation, rising oil prices, and hawkish commentary from RBA officials. The pain for borrowers is already being felt, with the average owner-occupier variable rate set to climb to 6.49 per cent.
Financial comparison site Canstar estimates that two more rate rises would push monthly repayments on a $731,000 home loan over $650 higher than at the start of 2026. This has raised concerns about the impact on consumers and the economy as a whole.