Reserve Bank of Australia raises cash rate to 4.85%, increasing mortgage costs
- Reports
- 2
- Developments
- 3
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The Reserve Bank of Australia lifted interest rates by a quarter of a percentage point, raising the cash rate from 4.60 per cent to 4.85 per cent. This decision marks the fifth rate hike this year and is the highest level since the global financial crisis in 2008. For a typical mortgage borrower, the increase means higher monthly repayments.
From dailymail.com
Why it matters
The rate increase places significant financial pressure on homeowners, particularly given that the average new owner-occupier loan has nearly tripled since 2008. This mounting pressure contributes to predictions of a potential recession in Australia.
The Reserve Bank of Australia previously raised interest rates to a 15-year high, which has led to suppressed spending and political shifts among mortgage holders.
From dailymail.com
Who's involved
- Michele BullockGovernor of the Reserve Bank of Australia, leading monetary policy
- Reserve Bank of AustraliaCentral bank of Australia responsible for monetary policy
How it developed
Newest first. Tap a step to see who reported it.- RBA governor Michele Bullock explained interest rate decisions, referencing past recession declarations by Paul Keating.Sub-event
- RBA rate hikes are straining mortgage holders and small businesses, prompting government defense of economic management.Sub-event
Hogan predicts a recession in Australia following the RBA's rate hikes.1 source
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The entities involved
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Michele Bullock
Governor of the Reserve Bank of Australia