RBA raises rates to 4.85%, highest in 18 years, but board splits
The RBA lifted the cash rate to 4.85 per cent; three of nine board members voted against the increase.
Reported by PerthNowAlso reported by The Nightly.
ShareWhy it matters
Higher rates mean bigger mortgage payments for homeowners and less interest on savings. Whether rates keep climbing affects how far your money stretches.
In Australia. Australian households with mortgages face rising repayments if the RBA continues to lift rates. Savers get slightly better returns, but borrowing becomes more expensive across the board.
Key facts
- 4.85 per cent
- New cash rate
- 3 of 9 members
- Board voted against
- 18 years
- Highest rate in
- 4.7 per cent
- Expected unemployment
- The Reserve Bank's board voted to raise the cash rate this month, but not everyone agreed.
- Of the nine members, three voted against the hike, signalling doubt within the central bank about whether more rises are needed.
- The 4.85 per cent rate is the highest in 18 years.
- Governor Michele Bullock said the board cannot rule out further increases if inflation expectations stay too high.
- Labour force data arrives Thursday, with economists expecting unemployment to hold steady at 4.7 per cent.
- Wage growth data comes Wednesday.
- Together, these figures will show whether the economy is cooling enough to stop the RBA from raising rates again.
