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Patrick Commins<\/p>\nReserve Bank raises interest rates to 4.85%Patrick Commins<\/p>\n
The Reserve Bank has hiked rates for the fifth time this year, from 4.6% to 4.85%, in a bid to regain control of surging inflation amid the ongoing global oil shock triggered by the war in the Middle East.<\/p>\n
The RBA\u2019s decision to hit mortgage holders again comes as no surprise after inflation jumped to 4.3% in the year to September, and following tough talk from senior central bank officials over recent days and weeks.<\/p>\n
The RBA\u2019s cash rate has now reached its highest level since 2008.<\/p>\n
Back-to-back hikes will heap more pain on over 3.3m households with home loans, and turn the screws on a federal government under pressure for its economic management.<\/p>\n
The latest increase will lift the monthly interest payment on a $700,000 home loan by $107, according to Canstar, bringing the total rise in repayments over this year\u2019s five hikes to $532.<\/p>\n
Jim Chalmers, the treasurer, said prior to the announcement that \u201cpeople are under substantial pressure already\u201d, adding that higher borrowing costs would \u201cmake things much harder\u201d.<\/p>\n
Share<\/a><\/p>\n Updated at\u00a022.36 EST<\/p>\n Key events<\/p>\n Chalmers was asked about the federal budget and its impact on inflation. He said:<\/p>\n double quotation markOur budgets are not what\u2019s putting upward pressure on inflation. But we can play a helpful role and that\u2019s what we intend to do.<\/p>\n He was also asked if he\u2019d consider stepping aside.<\/p>\n \u201cNo,\u201d the treasurer said.<\/p>\n Share<\/a>Chalmers says rate hike will be ‘difficult news’ for Australians already paying ‘hefty price’<\/p>\n Jim Chalmers, the treasurer, is speaking now after the RBA\u2019s decision. He said:<\/p>\n double quotation markToday\u2019s decision was widely expected, but that doesn\u2019t make it any easier for Australian families and businesses to absorb. It will be difficult news for many Australians who are already paying a hefty price for circumstances outside of their control.<\/p>\n He pointed to the ongoing war in the Middle East as a major factor in inflation:<\/p>\n double quotation markThe war\u2019s in its ninth month and its re-escalation is putting sustained upward pressure on inflation.<\/p>\n It\u2019s weighing on growth and its end can\u2019t come soon enough for the global economy or for Australians facing cost of living pressures.<\/p>\n Share<\/a><\/p>\n Updated at\u00a023.17 EST<\/p>\n Macquarie Bank announces it will pass rate rise on<\/p>\n Macquarie Bank has already announced it will pass on the interest rate rise to mortgage holders.<\/p>\n The bank said it will increase variable home loans by 0.25%, effective 19 November. It will also increase ongoing variable rates paid on its transactions and savings accounts by 0.25%, a boon to savers. Ben Perham, the head of personal banking, said:<\/p>\n double quotation markWith household budgets already feeling the strain, today\u2019s decision by the RBA will be challenging for many Australians.<\/p>\n To help our variable home loan customers prepare, we\u2019re again waiting more than two weeks before this latest increase takes effect.<\/p>\n Photograph: David Gray\/ReutersShare<\/a><\/p>\n Updated at\u00a023.14 EST<\/p>\n The cash rate is now the highest it has been in 18 years<\/p>\n A chart showing the cash rate<\/a>Share<\/a><\/p>\n Updated at\u00a022.55 EST<\/p>\n RBA board split on decision to raise cash rate<\/p>\n The decision was not a unanimous one: six members of the RBA board voted to raise the cash rate, while three voted to leave it unchanged.<\/p>\n The RBA said in a media release:<\/p>\n double quotation markThe Board is conscious of the period in which inflation has been too high. Given the revised inflation outlook and the continuing upside risks, the Board judged that a further tightening in financial conditions is warranted to support the return of inflation to target.<\/p>\n The Board will continue to do what it considers necessary to bring inflation sustainably back to target.<\/p>\n Share<\/a><\/p>\n Updated at\u00a022.46 EST<\/p>\n Reserve Bank raises interest rates to 4.85% The Reserve Bank has hiked rates for the fifth time this year, from 4.6% to 4.85%, in a bid to regain control of surging inflation amid the ongoing global oil shock triggered by the war in the Middle East.<\/p>\n The RBA\u2019s decision to hit mortgage holders again comes as no surprise after inflation jumped to 4.3% in the year to September, and following tough talk from senior central bank officials over recent days and weeks.<\/p>\n The RBA\u2019s cash rate has now reached its highest level since 2008.<\/p>\n Back-to-back hikes will heap more pain on over 3.3m households with home loans, and turn the screws on a federal government under pressure for its economic management.<\/p>\n The latest increase will lift the monthly interest payment on a $700,000 home loan by $107, according to Canstar, bringing the total rise in repayments over this year\u2019s five hikes to $532.<\/p>\n Jim Chalmers, the treasurer, said prior to the announcement that \u201cpeople are under substantial pressure already\u201d, adding that higher borrowing costs would \u201cmake things much harder\u201d.<\/p>\n Share<\/a><\/p>\n Updated at\u00a022.36 EST<\/p>\n RBA rate decision coming at 2.30pm<\/p>\n We\u2019ll have news for you in about 15 minutes.<\/p>\n Share<\/a> CBA forecasts home prices to fall by 14%<\/p>\n Australia\u2019s biggest lender, Commonwealth Bank, now expects national dwelling prices to suffer a peak-to-trough fall of about 14% amid souring economic conditions.<\/p>\n The bank, which had previously forecast prices to fall by 9%, revised its forecasts today ahead of what is expected to be the fifth interest rate rise this year.<\/p>\n CBA senior economist Trent Saunders said the price downturn had accelerated to capture mid-sized state capitals Brisbane and Perth<\/a>.<\/p>\n Saunders expects prices to stabilise late next year.<\/p>\n The revised outlook aligns with CBA\u2019s updated economic forecasts<\/a>, which warn that the prolonged conflict in the Middle East is helping trigger a \u201csharper, longer slowdown\u201d.<\/p>\n While most economists had anticipated low double-digit falls in Australian property prices, several now expect peak-to-trough drops of about 15%.<\/p>\n Photograph: Lukas Coch\/AAPShare<\/a><\/p>\n Updated at\u00a021.56 EST<\/p>\n \u2018Sharper, longer slowdown\u2019 predicted for Australian economy<\/a> as fifth interest rate hike looms<\/p>\n Australia\u2019s economy is set for a \u201csharper, longer slowdown\u201d, major bank economists say, as the Reserve Bank is forced to keep interest rates higher to rid the nation of persistent inflationary pressures.<\/p>\n The RBA is widely expected to hit mortgage holders with a fifth rate hike<\/a> on Tuesday, in a move that will push the cash rate to its highest since 2008 amid rising worries the economy could even be tipped into recession.<\/p>\n Belinda Allen, the head of Australian economics at CBA, said the extended Middle East conflict, collapsing house prices and a more aggressive central bank would drive real GDP down to just 1% by the middle of next year, nearly half the previous estimate of 1.8%.<\/p>\n Growth through 2027 would be barely stronger at an estimated 1.1%, according to the updated projections.<\/p>\n Read more here:<\/p>\n Share<\/a>How would your mortgage change?<\/p>\n For someone with an average-sized new mortgage of $731,000, paying a typical rate of 6.2%, a 0.25 percentage point rate increase would add about $119 to their $4,596 monthly repayments.<\/p>\n Use our loan calculator to check how a rate rise may affect you:<\/p>\n Share<\/a><\/p>\n Updated at\u00a021.42 EST<\/p>\n NSW premier warns of risk of \u2018stopping the economy dead\u2019<\/p>\n The NSW premier, Chris Minns, rejected commentary from some economists that the RBA\u2019s decision would be straightforward.<\/p>\n double quotation markI know they\u2019ve got a just difficult decision to make. I accept that, but we\u2019ve got to be careful that in their efforts to slow down the economy, they don\u2019t stop it dead.<\/p>\n This is an extra hit to a pay packet that many people haven\u2019t budgeted for, are not ready for. It\u2019s going to have a massive impact on our economy.<\/p>\n Minns said a rate hike would have a \u201cdisproportionate impact\u201d on the state\u2019s economy due to NSW\u2019s high house prices.<\/p>\n Chris Minns. Photograph: Dean Lewins\/AAPShare<\/a><\/p>\n Updated at\u00a021.03 EST<\/p>\n Anthony Albanese defended his government\u2019s record in the face of a likely rate hike.<\/p>\n The prime minister is in Saint John\u2019s, Antigua and Barbuda, for the Commonwealth heads of government meeting at the request of King Charles.<\/p>\n He has faced some criticism for being out of the country during the decision.<\/p>\n double quotation markWe work each and every day on cost of living.<\/p>\n What I recognise as well is that by engaging in the world, we can deal with our national security interests, but also make our economy stronger. That\u2019s why we need to engage in the world.<\/p>\n Anthony Albanese meets British PM Andy Burnham ahead of the Commonwealth heads of government meeting. Photograph: Kin Cheung\/ReutersShare<\/a><\/p>\n Updated at\u00a020.52 EST<\/p>\n Chalmers flags more \u2018savings\u2019 in next federal budget <\/p>\n Asked why Labor can\u2019t guarantee it won\u2019t find net savings in the mid-year budget update, Jim Chalmers told RN the government is undertaking that task this month ahead of December\u2019s release.<\/p>\n double quotation markWe are currently working our way through the spending pressures, the economic forecasts, and the savings options to come up with the best, most responsible budget update that we can.<\/p>\n There have been savings in all eight of our budget updates so far. There\u2019ll be savings in the ninth as well.<\/p>\n The powerful expenditure review committee met on Monday, and will convene again on Wednesday to discuss savings, Chalmers said.<\/p>\n Jim Chalmers. Photograph: Lukas Coch\/AAPShare<\/a><\/p>\n Updated at\u00a021.44 EST<\/p>\n Chalmers says Australians bracing for ‘difficult decision’ The treasurer, Jim Chalmers, told ABC\u2019s RN Australians are bracing for a \u201cdifficult decision\u201d ahead of an expected rate hike.<\/p>\n Another rise would likely increase the cash rate to 4.85%, taking it to the highest level in 18 years.<\/p>\n double quotation markPeople are under substantial pressure already, and obviously, if rates go up today, that will make things much harder, especially when there are already a number of rate rises in the system and their full effect hasn\u2019t been felt yet.<\/p>\n Regardless of the decision that the Reserve Bank takes independently this afternoon, we know that there is more work to do to make the budget as tight as it can be.<\/p>\nPatrick Commins<\/p>\n![\"Jonathan](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/11\/Jonathan_Barrett.png\")
Jonathan Barrett<\/p>\nPatrick Commins<\/p>\n![\"Tess](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/11\/Tess_Ikonomou.png\")
Tess Ikonomou<\/p>\nTess Ikonomou<\/p>\nTess Ikonomou<\/p>\nTess Ikonomou<\/p>\n