RBA interest rates: Reserve Bank holds official cash rate at 4.35% as economy slows and unemployment rises
Summary
The Reserve Bank of Australia (RBA) kept its official interest rate at 4.35% due to slower economic growth and rising unemployment. Mortgage payments have become more expensive, and consumer spending is weak, while experts have mixed views on whether rates will rise again soon.Key Facts
- The RBA left the official cash rate unchanged at 4.35%.
- Economic growth slowed down to 0.3% in the March quarter, down from 0.9% previously.
- Unemployment rose to 4.5% in May, the highest since 2021.
- Mortgage holders are paying more, with monthly payments up from $4,114 to $4,467 for a typical loan.
- Consumers are spending less on non-essentials and using savings to cover essentials like electricity and fuel.
- Some experts predict rates will stay steady or start to fall in mid-2027.
- Others, including Westpac, think rates might rise again in late 2026 and stay high until 2028.
- Inflation could remain high due to increased fuel costs linked to international conflicts affecting supply chains.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.