Australia’s central bank, the Reserve Bank of Australia (RBA), raises the official cash rate to 4.35% on Tuesday, marking its third consecutive increase this year. The rate moves up from 4.1%, a decision widely expected by markets. Multiple reports say the RBA links the tightening partly to rising fuel prices that are lifting inflation, with the bank warning that these pressures may persist and spread to broader prices. In remarks reported by outlets, RBA governor Michele Bullock indicates further rate rises could be needed, even though earlier hikes may not be sufficient to stop fuel-driven inflation on their own. One report also highlights that the RBA publishes updated forecasts showing cost-of-living pressures intensifying alongside weaker growth. The RBA’s guidance emphasizes the aim of reducing demand and curbing the risk of broader inflation taking hold once the effect of the oil price spike ends. Overall coverage frames the move as a response to ongoing inflation concerns, with the bank maintaining a hawkish stance as it balances inflation risks against economic softness.
RBA raises official cash rate to 4.35% for third straight meeting
Australia’s central bank, the Reserve Bank of Australia (RBA), raises the official cash rate to 4.35% on Tuesday, marking its third consecutive increase this year. The rate moves up from 4.1%, a decis...
- The RBA lifts Australia’s official cash rate to 4.35% from 4.1%.
- This is the third consecutive interest rate increase by the RBA this year.
- The RBA cites higher fuel prices as a driver of inflation and as a risk of broader ‘second-round’ price effects.
- RBA governor Michele Bullock indicates more rate rises may be needed.
- The RBA’s updated forecasts show cost-of-living pressures intensifying alongside weaker growth.
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 broadly”. The RBA’s decision to keep tightening...
3 months agoAustralia's central bank hiked interest rates for a third time this year on Tuesday, returning borrowing costs to post-pandemic highs and warning of sticky inflation as the c...
3 months agoMichele Bullock says more interest rate rises may be needed after the third interest rate hike in 2026 bringing the offical cash rate to 4.35%. The Reserve Bank governor says rate hikes to date won’t be able to stop fuel prices from driving up inflation and are instead aimed at cutting spending to stop broader prices from rising after the oil price spike endsRBA interest rates: Reserve Bank hikes official cash rate to 4.35% in blow to mortgage holders Continue reading...
3 months agoThe RBA has lifted rates again after soaring fuel prices pushed up inflationFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe Reserve Bank hiked interest rates again on Tuesday, after lifting rates in February and March.In a widely expected move, the central bank raised the cash rate to 4.35%, from 4.1%. Continue reading...
3 months agoReserve Bank of Australia raises rates for third consecutive meeting, lifting them to early-2025 levelsFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastUse our loan calculator to see how rate hikes could affect you The Reserve Bank has delivered a third straight interest rate hike to contain growing inflationary pressures linked to higher fuel prices, even as it warned the Iranian war would deliver a major blow to the economy.The widely expected decision to lift the cash rate to 4.35%, from 4.1%, comes as the central bank revealed a gloomy new set of forecasts that showed intensifying cost of living pressures alongside weaker growth. Continue reading...
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