Australia's central bank expected to raise rates to 18-year high
The Reserve Bank of Australia is forecast to lift its cash rate to 4.85% on Tuesday, marking the fifth increase this year.
At a glance
- Cash rate expected to rise to 4.85%, the highest in 18 years
- This would be the fifth rate hike in 2023
- Treasurer warns of mounting financial pressure on households
- Full effects of previous rate rises have not yet been realised
The Reserve Bank of Australia is expected to raise its cash rate to 4.85% on Tuesday, the highest level in 18 years. The move would represent the fifth rate increase in 2023.
Treasurer Jim Chalmers said Australians are bracing for a "difficult decision" ahead of the expected hike. He noted that people are already under substantial pressure, and a rate rise would compound existing financial strain, particularly as the full effects of previous increases have not yet been felt.
Why it matters
Interest rate decisions affect borrowing costs for mortgages, loans and savings, directly impacting household finances and economic growth across Australia.
Original reporting
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
