RBA Slams Brakes on Inflation with Rate Hike to 4.6%: Mortgage Holders Feel Pinch

The Reserve Bank of Australia (RBA) has raised its benchmark borrowing rate to 4.6%, its highest in nearly 15 years, in an effort to combat inflation.

The fourth interest rate hike of 2026 means that the average mortgage holder will now pay around $450 more per month than they did in February.

RBA governor Michele Bullock acknowledged that this decision would be difficult for households with a mortgage and businesses with loans, but emphasized that high inflation affects all Australians.

The RBA's preferred measure of inflation, trimmed mean, is currently at 3.6%, above the bank's target range of 2-3%.