Reserve Bank lifts cash rate to 18-year high as mortgage costs rise

Summarised from 2 outlets · Updated 7 Nov, 23:14 · Archive

Australia's Reserve Bank has lifted the cash rate to 4.85 per cent, its highest level in 18 years. The increase, announced on Tuesday, marks the fifth rate rise in 2023.

RBA governor Michele Bullock acknowledged the impact on households, stating that Australians would feel poorer as their spending could not grow quickly because incomes were not growing quickly. She attributed the squeeze to lack of productivity growth and a 'massive supply shock'.

Compare the Market economics director David Koch urged mortgage holders to 'fight back' by reviewing their bills as a family, including energy, insurance, phone services, subscriptions and mortgages. He advised against simply accepting current rates, noting that small savings across multiple bills would accumulate to significant money over a year.

According to Compare the Market, Australians with an average mortgage of $731,000 are paying $114 extra per month for each 25 basis point rate increase.

How it is being reported

• Leading voice urges mortgage holders to ‘fight back’ as big four banks hike ratesMortgage holders are being urged to ‘fight back’ against rising interest rates starting with a back-to-basics approach.The West Australian · 7 Nov, 22:56
• Leading voice urges mortgage holders to ‘fight back’ as big four banks hike ratesMortgage holders are being urged to ‘fight back’ against rising interest rates starting with a back-to-basics approach.Perth Now · 7 Nov, 22:56

In this story: Reserve Bank of Australia · Michele Bullock · David Koch · Compare the Market · Australia

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