Reserve Bank hints at rate rise to an 18-year high in November
Inflation rose to 4 per cent in August, above the 2 to 3 per cent target.
The Reserve Bank has hinted it could raise interest rates again at its next meeting in three weeks. The cash rate is the Reserve Bank's key interest rate, and it helps set the cost of borrowing.
Last month its nine-member board voted unanimously to lift it to 4.6 per cent, a 15-year high. Inflation, the overall rise in prices, hit 4 per cent in August, up from 3.5 per cent in July.
The bank's target is 2 to 3 per cent, and inflation has been above it for 13 months in a row. Minutes from the September meeting say the board will raise rates further if required.
A rise on November 3 would take the cash rate to 4.85 per cent, the highest since December 2008. The board is particularly worried that the Middle East conflict is adding to price pressures.
- 4.6 per cent
- Cash rate
- 4 per cent
- Inflation in August
- November 3
- Next meeting
- 27 per cent
- Futures market chance of a rise
Why it mattersA higher cash rate usually means bigger repayments for people with loans that change with rates.
AustraliaBorrowing costs could rise further if the Reserve Bank lifts the cash rate in November.
Corroborated bythenightly.com.au
✓ Claims checked against the source. checked 2 h ago
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