RBA hikes official interest rate to 4.35% in blow to mortage holders

<p>Reserve Bank of Australia raises rates for third consecutive meeting, lifting them to early-2025 levels </p><ul><li><p><a href="https://www.theguardian.com/australia-news/live/2026/may/05/hantavirus-cruise-budget-jim-chalmers-rba-interest-rates-cost-of-living-mortgage-royal-commission-antisemitism-victoria-state-budget-ntwnfb">Follow our Australia news live blog for latest updates</a></p></li><li><p>Get our <a href="https://www.theguardian.com/email-newsletters?CMP=cvau_sfl">breaking news email</a>, <a href="https://app.adjust.com/w4u7jx3">free app</a> or <a href="https://www.theguardian.com/australia-news/series/full-story?CMP=cvau_sfl">daily news podcast</a></p></li></ul><p>The Reserve Bank has delivered a third straight interest rate hike, as it seeks to head off the inflationary threat from higher fuel prices linked to the ongoing US-Israel war on Iran.</p><p>A week out from what the treasurer, Jim Chalmers, is simultaneously calling his most ambitious and responsible budget yet, the widely anticipated decision to increase the cash rate to 4.35% from 4.1% comes amid growing worries about the economic fallout from the Middle East conflict.</p> <a href="https://www.theguardian.com/australia-news/2026/may/05/rba-interest-rate-decision-reserve-bank-australia-rates-inflation">Continue reading...</a>