Gold Coast households and businesses have been delivered another blow, with the Reserve Bank increasing interest rates by another 25 basis points.
It’s the third straight rate hike, taking the official cash rate to 4.35 per cent as the RBA and the government struggle to keep a lid on inflation.
It also wipes out the three rate cuts the bank delivered last year.
The increase will add an extra $81 to repayments on a $500,000 mortgage.
Today’s decision follows figures released last week showing headline inflation soaring to 4.6 per cent, thanks mostly to higher petrol prices caused by the war in Iran.
Underlying inflation, the RBA’s preferred measure, remained steady at 3.3 per cent but is still outside the bank’s target zone.
In a statement, the RBA warned inflation will remain a problem for a while yet as the impacts of the war in Iran trickle through to the rest of the economy.
“As expected, developments in the Middle East are having an impact on inflation. Higher fuel prices are adding to inflation, and there are indications that this is likely to have second-round effects on prices for goods and services more broadly.
“This inflation impulse is in addition to the high inflation recorded around the start of 2026, reflecting capacity pressures in the economy.”
“In light of these considerations, the Board assessed that inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including to inflation expectations.
“It was therefore judged appropriate to increase the cash rate target.”
Experts are tipping more pain to come with another rate hike to come before September.
The increase comes ahead of next week’s federal budget, with the government under immense pressure to rein in spending and reduce debt.
More to come.
