+34
Australia’s cash rate now sits at its highest level in almost 15 years.
Australia’s cash rate now sits at its highest level in almost 15 years. Australia n mortgage holders have copped a fresh whack after the Reserve Bank lifted the cash rate to its highest level in almost 15 years.
Tuesday’s hike of 25 basis points took the cash rate from 4.35 per cent to 4.6 per cent, the second-highest level among developed nations behind only Iceland .
“Since the previous meeting, some of the upside risks to inflation are materialising,” the RBA’s monetary policy board said. “There have been further disruptions to global oil supply and recent data suggest that growth and inflation in Australia have been higher than expected. “Higher fuel prices have partially been passed through to prices of other goods and services. This inflation impulse is in addition to the effect of capacity pressures in the economy.
”“To achieve this, growth in aggregate demand needs to remain subdued for a period to reduce capacity pressures and bring inflation back to target,” it said.
“The three increases in the cash rate target since the beginning of the year have tightened financial conditions and the economy appears to be slowing. “But inflation is still too high and the Board judged that, in light of recent developments, a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period.
” Australians with variable mortgages will now be waiting on a message from their lender informing them that their loan service costs are going up. Macquarie Bank was quick to move, announcing within minutes of the RBA’s decision that it was passing on the hike to customers.
“With the RBA confirming another rate rise, we’re letting our customers know we’ll be lifting our variable home loan rates, as well as the variable rates available on our transaction and savings accounts,” the bank’s head of personal banking Ben Perham said. “For any customers concerned about making their home loan repayments, we encourage them to get in touch, as financial assistance may be available.
” The board’s fourth increase of 2026 — which was unanimous — takes the cash rate above the 2023 hikes to the highest setting since November 2011 . It comes after fresh data from the Australian Bureau of Statistics showed household spending was unchanged in August, while spending on recreation, clothing, footwear, food and furniture had fallen. Fuel spending soared 8.1 per cent in August. Excluding fuel spending, total household spending would have fallen by 0.3 per cent.
News Australia Business Banking Business Interest Rates Business Money
Australia Latest News, Australia Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Newcastle Knights and Sydney Roosters Set for 2026 NRL Grand FinalThe Newcastle Knights and Sydney Roosters will contest the 2026 NRL Grand Final at Accor Stadium, with both teams seeking a historic premiership. The Knights are aiming to become only the second side to progress from the wooden spoon to the premiership, while the Roosters are chasing their first title since 2019.
Read more »
The Double Burden: Rising Cost of Living and Lifestyle Creep Impact Young Families in 2026Amidst soaring grocery prices and stagnant wages, young families face severe financial strain. The article explores how dual incomes have become essential while lifestyle creep, driven by increased discretionary spending on subscriptions and comforts, exacerbates money management challenges.
Read more »
‘Just so grateful’: The Voice winner for 2026 crowned‘I just can’t believe it’.
Read more »
AFL 2026 Trade Period Opens October 2 as Free Agency BeginsThe 2026 AFL trade period opens on October 2 with free agency, followed by nine days of trades from October 5 to 14, as all 18 clubs prepare for player movement.
Read more »