Interest Rates

The Reserve Bank's new boss has not backed away from tough talk, saying the bank must use its "blunt" tool of interest rates to hammer out inflation for the collective welfare of Australians.

Australian financial markets are now pointing to a close to zero chance of further rate rises — with a fair chance of a rate cut next year. That's thanks to the latest news from the US and UK, writes Peter Martin.

Minutes from the RBA's November meeting show the central bank decided to lift interest rates to their highest level in 12 years because of alarming signs that some businesses were passing on higher inflation costs to consumers.

High rents are driving our inflation because of record levels of immigration, and few appear willing to confront the problem. But this is not — and should not — be an argument about multiculturalism, race or diversity, writes Ian Verrender.

Economists are warning recent wages growth could fuel Australia's already sticky inflation — and put even more upwards pressure on interest rates, writes David Taylor.

Wages post their biggest quarterly increase in at least a quarter of a century, due to big pay boosts for aged care staff and workers on awards.

The growing sullenness amongst voters about cost of living pressures makes it inevitable that the economy will once again become the absolute core issue for the government, writes Laura Tingle.

The Reserve Bank reveals the reasoning behind its latest interest rate rise and whether it is likely to have to lift them again.

Interest rates have gone up by 0.25 percentage points. Check to see how the major banks are reacting — and what that means for savers and mortgage holders. 

Lisa Mammone and her husband do all they can for their kids, but they are bracing to make even more sacrifices as interest rates hit a 12-year high.

There's nothing in the RBA governor's statement to suggest she is thinking of pushing up rates again, and financial markets are also betting this rate hike will be the last, writes Peter Martin.

After keeping rates on hold for the past four meetings, the Reserve Bank has resumed hiking its cash rate target, with a quarter of a percentage point increase taking the benchmark interest rate to 4.35 per cent.

Treasurer Jim Chalmers says today's interest rate hike will impact Australians who are already doing it tough as rates soars to a 12-year high of 4.35 per cent.

It is the latest in a steep string of hikes that have taken the cash rate from a record low 0.1 per cent at the start of May 2022 to the highest level since November 2011.

EY Oceania Chief Economist, Cherelle Murphy says the risks of inflationary forces remain but it's not clear if the RBA will raise rates again this year.

Tell us your loan size, term and interest rate, and our mortgage repayment calculator will work out how much extra you may have to pay on your loan. 

Interest rates hit a 12-year high as the Reserve Bank resumes hiking, with a 0.25 percentage point rise taking the cash rate to 4.35 per cent.

Economist Emily Millane says a rate rise will place extra financial stress on families

Tuesday's RBA meeting is about more than rates — it's also a credibility test in disguise. After all, you can only make an explicit threat so many times and not follow through without eroding your authority, writes business editor Ian Verrender.

The Reserve Bank board to decide whether to raise official interest rates again, despite a weak economy and millions of households already suffering intense cost of living pain.

Why on earth would Australia's Big Four banks be expecting the Reserve Bank to lift rates on Melbourne Cup Day when Australians are buying less than a year ago and annual inflation is heading down, asks Peter Martin.

Like Looney Tunes' famous cartoon villain, the Reserve Bank risks running Australia's economy over a cliff if it becomes too single-minded in its pursuit of the inflation Road Runner, writes Michael Janda.

Bets on an interest rate rise next month gyrate dramatically on Senate testimony from the Reserve Bank governor, having surged on higher-than-expected inflation numbers.

Consumer prices rose 1.2 per cent in the September quarter, slightly above economist forecasts and increasing the risks of another Reserve Bank interest rate rise.

If your ultra-low fixed rate is about to expire, here are some things you can do to ease the transition to higher repayments.