RBA Interest Rate Hike Set to Punish Borrowers with Higher Repayments

The Reserve Bank of Australia (RBA) is expected to hike interest rates for a fourth time in 2026, pushing them to a 15-year high.

This would add $91 per month on a typical $600,000 mortgage, with the average owner-occupier variable rate reaching 6.49% if lenders pass on the full increase.

RBA governor Michele Bullock has suggested that unemployment needs to be higher to curb inflation, sparking criticism from union groups and the social service sector.

Treasurer Jim Chalmers pushed back against Bullock's comments, arguing that it's possible to have low unemployment without high inflation.