Reserve Bank of Australia raises rates to 4.35% in third hike this year
Updated
Updated · The Guardian · May 5
Reserve Bank of Australia raises rates to 4.35% in third hike this year
18 articles · Updated · The Guardian · May 5
Governor Michele Bullock said the board may now pause, but lifted its June-quarter inflation forecast to 4.8% from 4.2% and warned Australia's outlook was "very grim".
The RBA expects growth of just above 1% through mid-2028 and unemployment rising to 4.7%, with worse outcomes if high energy prices persist.
The move fully reverses 2025 cuts as the bank prioritises inflation control over full employment if needed, while Treasurer Jim Chalmers faces scrutiny over next week's budget response.
Could a stronger Australian dollar provide unexpected relief from soaring prices as mortgage payments rise?
If the RBA's inflation cure requires job losses, what is the government's plan for those left unemployed?
Are interest rate hikes the right weapon to fight inflation caused by a distant war?