RBA set to hike cash rate to 4.6%, highest since November 2011
The RBA is almost universally expected to raise the cash rate to 4.6 per cent on Tuesday.
The Reserve Bank of Australia is expected to hike the cash rate to 4.6 per cent this Tuesday, representing the highest benchmark borrowing rate since November 2011. Money markets have almost fully priced in the September move.
The shift reflects unexpectedly hot inflation data released last month and rising global oil prices. The US Federal Reserve, European Central Bank and Bank of Japan have all raised rates recently, adding pressure.
Strong investment in artificial intelligence is also adding excess demand to the economy. Governor Michele Bullock and other officials have signalled they are losing patience with inflation staying above the target band.
Inflation data arrives Wednesday, with more inflation figures due in late October. If inflation stays elevated, further rate hikes could follow in November.
- 4.6 per cent
- New cash rate
- November 2011
- Highest since
- Michele Bullock
- RBA Governor
- Tuesday
- Decision date
Why it mattersEach rate rise directly increases mortgage repayments for borrowers and lifts interest earned on savings, reshaping household finances.
AustraliaAustralian mortgage holders will face higher repayments if the hike proceeds, while savers will earn more on deposits and savings accounts.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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