RBA Lifts Cash Rate to 4.60%, Piling Pain onto Mortgage Holders

The Reserve Bank of Australia (RBA) has raised the cash rate to 4.60% in its fourth increase this year, making mortgage repayments even more painful for Australian households.

The decision was made by the RBA's Monetary Policy Board, which voted unanimously to raise the rate from 4.35%. The move is expected to push up monthly repayments for borrowers with large mortgages, with some facing increases of over $6,700 a month.

Australia's major banks have already started passing on the increase, with Macquarie Bank announcing it would pass the full 25-basis-point hike through to variable mortgage customers. The rate rise is expected to further squeeze household budgets, which are already struggling with high inflation and rising fuel costs.