RBA Slams Brakes with Largest Rate Hike Since 2011

The Reserve Bank of Australia (RBA) has increased interest rates by 25 basis points to 4.6%, the highest level since 2011.

This decision was made after a two-day meeting, with expectations for a hike having firmed in recent weeks due to hotter-than-expected inflation and rising oil prices.

Markets had already priced in another rate rise by February, and some analysts believe there may be a third rate hike in 2027.

The average owner-occupier variable rate will now rise to 6.49%, according to financial comparison site Canstar, which means monthly repayments on the average new home loan of $731,000 would be more than $650 higher than at the start of 2026.