The Reserve Bank of Australia has Decided to Increase the Cash Rate a Further Quarter of a Percentage Point, Bringing It to 4.1 Percent – Its highest Level Since April 2012

The Reserve Bank of Australia has Decided to Increase the Cash Rate a Further Quarter of a Percentage Point, Bringing It to 4.1 Percent – Its highest Level Since April 2012

The Reserve Bank of Australia has decided to increase the cash rate a further quarter of a percentage point, bringing it to 4.1 per cent – its highest level since April 2012.

Read today’s official statement on the RBA’s website

The cash rate was raised to 4.10% Increased by 25 basis points.

Today’s decision will cause further strain to borrowers struggling with the cost of living pressures and rising interest rates.

But the move by the RBA shouldn’t come as a shock – there had been warnings that more hikes might be needed to bring inflation under control, after Australia’s headline inflation rate rose to 6.8 per cent for April 2023, up from 6.3 per cent the month prior.

Governor Lowe recently told federal MPs he had no tolerance for lingering high inflation and would do what needed to be done to bring it down.

Given today’s decision, lenders are likely to pass on the cash rate increase.