The Reserve Bank of Australia (RBA) has raised interest rates for the third consecutive month, pushing the cash rate to 4.35% from 4.1%. The move, widely anticipated by economists, comes as soaring fuel prices have driven inflation higher.
For Australian families with an average-sized new mortgage of $736,000, the latest hike adds approximately $117 to monthly repayments, based on a typical rate of 5.7%. This brings the total monthly payment to $4,389, up from $4,272.
The RBA had previously lifted rates in February and March, and analysts now expect a total of four rate increases in 2026. The central bank's actions aim to curb inflationary pressures, but they place additional financial strain on households already grappling with rising living costs.
Borrowers are advised to use the RBA's interest rate calculator to assess the impact on their personal finances. The calculator allows users to input their loan amount and current rate to estimate new repayments.
