Australia's central bank raises rate to 4.85% in 5th hike
Australia's central bank just raised interest rates to 4.85% (the fifth hike this year) as a way to fight rising inflation (now at 4.3%).
This move, triggered partly by global oil price spikes from the Middle East conflict, means higher borrowing costs and more financial pressure for many Australians.
Mortgage holders face higher repayments
Over 3.3 million households with home loans are now paying even more each month: a $700,000 mortgage will cost an extra $107 monthly after this latest hike, adding up to $532 over this year's five hikes (2026).
The steady rate increases have sparked fresh questions about the government's economic strategy, especially as big banks lower their growth forecasts for Australia.
Treasurer Jim Chalmers admitted these changes are tough on families already under substantial pressure.