Australia Hikes Interest Rate Citing Higher Fuel Prices
The 8-1 vote unwinds last year’s cuts and could add about $91 a month to a $600,000 mortgage, Canstar said.
- On Tuesday, the Reserve Bank of Australia raised the cash rate target by 0.25 per cent to 4.35 per cent, marking the third consecutive increase this year amid elevated inflation.
- Surging automotive fuel prices sparked by the war in the Middle East drove headline inflation to 4.6 per cent in March, pushing the board to act as price pressures remained above the 2 per cent to 3 per cent target.
- Canstar data suggests a borrower with a $500,000 mortgage may pay $76 extra each month, while those owing $1 million can expect an additional $152 monthly following the hike.
- Mortgage Choice Newcastle broker Peter Byrne reported an uptick in clients fixing loans, fearing further rate rises now that the cash rate has returned to its 2024 peak.
66 Articles
66 Articles
Macroscope | Australia’s interest rate rise signals growing hawkish stance in Asia
For an indication of how much the energy crisis is shaping the path of monetary policy, look no further than Australia. On May 5, the country’s central bank raised interest rates for the third consecutive time, unwinding last year’s monetary easing. The Reserve Bank of Australia (RBA) said “higher fuel prices are adding to inflation and there are indications that this is likely to have second-round effects on prices for goods and services more b…
Australian central bank hikes rates again as stagflation threat grows
The hikes for this year so far total three quarters of a percent with more rises threatened in the future, taking hundreds of dollars a month from the disposable income of households battling to pay off mortgages.
In a context of increased inflationary pressures resulting from the war in the Middle East and the sharp rise in the price of oil, the Central Bank of Australia again raised the interest rate, equalling the peak reached in December 2024.The Reserve Bank of Australia (RBA) decision to raise the rates to 4.35%, was in line with the expectations of economists consulted by Reuters. Eight council members voted in favour of the rise, while one chose t…
The continent is heavily dependent on deliveries from Asia and high energy prices drive inflation up. Meanwhile, interest rates are back to pandemic levels.
Interest rates rise again as markets slip and mortgage pressure builds
The Reserve Bank has lifted interest rates for the third time this year, pushing the cash rate to 4.35 per cent, even as other major economies pause. In this episode, PWC Chief Economist Amy Lomas unpacks what’s driving the decision and what it signals for the months ahead. The ASX edged lower, falling 0.2 per cent, with Todd Hoare from LGT Wealth Management breaking down how investors reacted. And with borrowers facing rising costs, Sally Tinda…
Coverage Details
Bias Distribution
- 48% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
