Millions of Aussies set for hip pocket hit on Melbourne Cup day
Market analysts are predicting the Reserve Bank will hike interest rates when they next meet on November 7, just half an hour before the race that stops the nation.
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Interest Rates
This is a news collection page about the latest Interest Rate headlines and financial news. You will find accurate breaking news from the Reserve Bank of Australia, interviews with politicians and economists, and in-depth analysis. We cover interest rates, mortgages, and the cost of living crisis. This page will also have the latest interest rate news including live updates and breaking headlines from Australia and around the world.
What are interest rates and how do they impact me?
Interest rates determine how much it costs to borrow money from banks. Australia's interest rate is set by the independent central bank, the Reserve Bank of Australia (RBA). Their cash rate influences the interest rates of the major banks like Commonwealth Bank, ANZ, Westpac, and NAB. Interest rates affect how much it costs to borrow for a mortgage or business loan.
What affects interest rates?
When banks raise or lower interest rates, they are responding to the conditions of the economy. The Reserve Bank of Australia uses the cash-rate to reduce inflation, or to encourage economic activity.
Australia interest rate history
Interest rates have increased regularly since May 2022, going up 13 times in 15 months. Before that, the cash rate was less than 1.00 per cent since July 2019.
When will interest rates go down?
Economists are split on how high interest rates will go, and cannot yet predict when interest rates will go down.
Inflation rises in September, deepening rate fears
Inflation in Australia has largely beaten expectations, raising fears among borrowers that the RBA will be forced to deliver another interest rate hike.
Inflation
'Will not hesitate': RBA governor issues interest rate rise warning
Michele Bullock has used her first speech as RBA governor to reiterate the bank's approach to the cash rate.
Cost of Living
RBA delivers ominous interest rates warning
Australians could be hit by another cash rate hike as soon as a fortnight from now unless inflation eases.
finance
RBA's grim six-month warning for one group of homeowners
The RBA's latest Financial Stability Review largely painted a picture of unexpected resilience, but the news is ominous for some borrowers.
finance
Experts say Australia at 1-in-3 risk of hitting recession next year
A panel of economists questioned by Finder for its RBA Survey say there is a roughly one-in-three chance that Australia will find itself in a recession in 2024.
finance
RBA keeps interest rates on hold as experts warn peak is yet to come
The Reserve Bank of Australia (RBA) has kept the nation's interest rates on hold, but experts have warned borrowers not to breathe a sigh of relief yet.
Australia
Dire forecast for mortgage holders as hopes interest rates to soon fall dashed
Hopes interest rates could soon fall have been dashed as the fight against inflation continues.
Australia
Lowe hits out at 'vitriol and clickbait' in final speech
The outgoing RBA boss, whose term ends on September 17, said society "had work to do" in how it responds to complex topics that are in the public interest.
finance
Interest rates on hold as outgoing RBA governor leaves legacy
Aussie borrowers can breathe a sigh of relief as the RBA keeps the cash rate on hold at 4.10 per cent for a third month running.
Australia
Third interest rate pause in three months tipped from RBA today
This will be Philip Lowe's final RBA board meeting as governor.
Reserve Bank Australia
Recovery in property prices quickens, with sixth consecutive monthly rise
New research released today showed values picking up across the country.
Real estate
Inflation at lowest level since early 2022, easing fears of rates rise
The ABS revealed the consumer price index rose by 4.9 per cent over the last year – the lowest the measure has been at since the same figure was recorded in February 2022.
Inflation
Incoming RBA governor warns of fresh threat in interest rates battle
Michele Bullock says climate change poses a "particularly acute" challenge to the Australian economy.
climate change
The borrowing power plunge set to trip up homeowners
Around 150,000 households will tip over the $95 billion fixed-rate cliff as their deals expire, throwing many into financial uncertainty.
Mortgages
Mortgage burden hits record high for Australians
And new research suggests the RBA may have their hand "forced" on further rises.
Mortgages
The dire forecast for Australia's economy in the next 12 months
More than 90 per cent of insolvency professionals believe Australia is set to dip into a recession.
finance
Wages growth slows, fuelling hopes of another rates pause
Wages growth in Australia has slowed, fuelling hopes that the Reserve Bank will once again keep interest rates on hold in September.
finance
The forecast fixed-rate cliff may not be as big a fall for borrowers
New data suggests Australians may be equipped to handle moving to variable rates.
Australia
'Worst is over', RBA boss declares
Philip Lowe said that while many were suffering, he had also received many letters 'thanking' him for raising rates.
Inflation
Forecast Aussie dollar will plunge to record low over next five years
A slowing Chinese economy would help push the value of our currency down to record levels, a leading investment analyst warned.
finance
Surge in number of homes repossessed in Sydney
A surge in the number of homes being repossessed points to the devastating impact of interest rates rises for some borrowers.
PROPERTY
Three of four big banks believe interest rates have peaked
But the Reserve Bank of Australia has foreshadowed further pressure on mortgage holders.
AustraliaInterest rates on hold as RBA eyes 'soft landing'
Pausing rates for a second month running, the central bank said it was closely watching a slowing rate of inflation and an easing of consumer spending.
Reserve Bank Australia
Millions await RBA's rates call today
Experts are divided on whether or not the board will elect to push rates another 0.25 per cent higher.
Cost of Living
Recession warning as RBA weighs up tomorrow's rates decision
Economists are split on whether the bank will lift the cash rate again tomorrow.
Economy
Why the RBA may lift rates again despite inflation slowing
Inflation may be heading in the right direction but the bank will likely still consider another rise.
Inflation
Inflation tumbles in Australia as eyes turn to RBA
The effects of a dozen interest rate hikes since May 2022 are taking hold as Australia enters a period of 'disinflation'.
Consumer
Key figure to be revealed in days is 'make or break' RBA rate hike
The cost of living is adding up, but this week one set of numbers will matter the most.
Inflation
Small businesses forced to cut staff, close 3 days a week
'If it goes on like this for another six or seven months like this, we're going to close.'
Cost of LivingBleak reasons behind interest rates pause revealed
The cost of mortgage repayments have hit historical highs, but the RBA is still mulling further rate rises.
finance
Big changes are coming to the RBA. This is what it means for you
While everyone might want an easy answer here about whether rates will rise or fall more under the reformed RBA, the reality isn't quite so simple.
finance
Property group to pay stamp duty for customers who buy new home
If residents purchase a new build home from Allam properties, the group is promising to rebate the cost of stamp duty up to $60,000 after the sale goes through.
Sydney
Single-income homeowners struggle to afford mortgage repayments
New research reveals just how long you have to work to afford an average home loan repayment.
Australia
Who is Michele Bullock, Australia's next Reserve Bank governor?
Michele Bullock has been named as the next governor of the Reserve Bank of Australia (RBA), to replace outgoing chief Philip Lowe when his term ends on September 17.
Reserve Bank Australia
Aussies spending less on non-essential items as cost of living bites
ABS data revealed household spending on discretionary goods and services - meaning non-essential items - was 0.6 per cent lower compared to May last year.
money
Senator defends RBA boss amid mounting calls for his replacement
Amid mounting criticism over his handling of the nation's cost of living crisis, Liberal Senator Jane Hume has defended Reserve Bank of Australia Governor Phillip Lowe, claiming that he's "only doing his job".
Philip Lowe
'I know what it's like to do it tough': PM responds to rate rise pause
Anthony Albanese claimed there were many positive signs in the "two-speed economy".
Economy
'RBA must take responsibility for their poor insight'
As mortgage holders breathe a sigh of relief in the wake of the rates pause, one man claims it's "not enough".
Reserve Bank Australia
Interest rate hold welcomed by potential home-buyers in Melbourne
Those looking to crack Melbourne's real estate market are hopeful today's decision is a sign interest rates are stabilising.
Victoria
RBA hits pause on interest rates but warns more rises to come
The Reserve Bank of Australia (RBA) has left interest rates on hold at 4.1 per cent, but has warned that more hikes will be needed to contain inflation.
Australia
Mark Bouris predicts Australian recession 'likely' amid rate hikes
Finance guru Mark Bouris has urged people suffering repeated interest rises to "hang in there", predicting a recession will bring some relief in coming months.
Economy
Mortgage stress at highest point in 15 years, research finds
Homeowners haven't struggled this much since the Global Financial Crisis.
MortgagesMillions on tenterhooks ahead of July rates call
The majority of the big banks are expecting a further 0.25 per cent to be added to the cash rate - but experts are split.
Reserve Bank Australia
Finance guru says one stat will stop rate hikes
Mark Bouris has a grim prediction for people awaiting the Reserve Bank's decision tomorrow.
finance
Homeowners on the edge with half unable to cut spending any further
About 70 per cent of Australia's mortgage holders are worried about meeting their repayments, with younger people feeling the pinch in particular, new research has found.
PROPERTY
Mortgage cliff will see 'unprecedented' repayment spike
With around half of all fixed-rate loans expiring this year, many Australians will see their mortgage repayments more than double.
Mortgages
The 'sticky' issue making the cost of living crisis worse
Economists are talking about how "sticky" inflation is. This is what that term actually means.
finance
Australian economy set to slide to second-slowest in Asia-Pacific
A new report has painted a grim picture of a national slowdown, driven largely by high - and rising - interest rates.
Economy
UK's shock interest rate move should serve as 'a wake-up call' to Aussies
The Bank of England has imposed a 13th consecutive rate hike, and concerns are growing Australia's heading in the same direction.
banks
