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Reserve Bank lifts cash rate to 4.85 per cent, its fifth rise this year
Reserve Bank of Australia lifts cash rate to 4.85 per cent, its fifth rise this year.
Key points
- Six of the nine board members voted to lift the cash rate by 0.25 percentage points to 4.85 per cent.
- The rise is the fifth this year and takes the cash rate to an 18-year high.
- Governor Michele Bullock said many Australians will feel like they are experiencing a recession.
Why it matters. The rate rise intensifies pressure on Treasurer Jim Chalmers to cut government spending, as the central bank blames an overstretched domestic economy and inflation that is too broadly based.
Six of the nine Reserve Bank of Australia board members voted on Tuesday to lift the cash rate by 0.25 percentage points to 4.85 per cent. Governor Michele Bullock blamed an overstretched domestic economy for the move, which takes rates to an 18-year high. Bullock said many Australians will feel like they are experiencing a recession, and the decision intensifies pressure on Treasurer Jim Chalmers to cut government spending.
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Reserve Bank lifts cash rate to 4.85 per cent, its fifth rise this year
The Reserve Bank of Australia has raised its cash rate to 4.85 per cent, the fifth increase this year. Governor Michele Bullock said the overstretched domestic economy forced the bank to act. The move takes the rate to an 18-year high. Mortgage repayments have risen to near-record levels as a result. Bullock said many Australians would feel as though they were experiencing a recession. The decision adds pressure on the government to cut its spending.
RBA lifts cash rate to 4.85 per cent in fifth rate rise of 2026
The Reserve Bank of Australia has confirmed its fifth interest rate increase of 2026. The cash rate target rose by 25 basis points, from 4.60 to 4.85 per cent. The higher benchmark rate feeds through to variable mortgage rates, meaning repayments will rise for many borrowers. Publications have published calculators to help households estimate how much extra they will pay. The decision is part of the central bank's efforts to manage inflation.