Interest rates rise as RBA tackles inflation | 7NEWS

3 months ago The News Room

The Reserve Bank of Australia has increased the official cash rate by 0.25% to 3.85%, marking the first interest rate rise since 2023. The decision, driven by headline inflation reaching 3.8% in December—well above the RBA’s target band of 2-3%—will add approximately $109 per month to repayments on an average $700,000 mortgage. Reserve Bank Governor Michele Bullock indicated inflation is expected to remain above target for some time, with economists predicting further rate increases could push the cash rate to 5% by year’s end.

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