Reserve Bank Raises Rates Amid Global Energy Crisis
RBA hikes interest rates to 4.1% as soaring energy costs threaten to drive Australian inflation to 5%, further squeezing mortgage holders.
The Reserve Bank of Australia (RBA) has announced its second consecutive interest rate increase, lifting the cash rate target from 3.85% to 4.1%. This move brings the rate back to the level it was at in February 2025, effectively wiping out the relief offered by two rate cuts made last year.
The decision comes amid a global energy shock that threatens to push Australian inflation towards 5%, posing significant challenges for households and businesses. The energy crisis, driven by factors such as the war in Ukraine and supply chain disruptions, has led to soaring fuel and electricity prices across the country.
Source: The Guardian
