RBA Hikes Rates to 4.1% Amid Iran War Inflation Risks
The Reserve Bank of Australia (RBA) has increased the official cash rate by 25 basis points to 4.1%, its second hike this year, pushing borrowing costs to a near 12-month high. The decision, passed by a narrow majority of the board, comes as the conflict in the Middle East disrupts global oil supplies, sending petrol prices soaring and adding a new inflationary impulse to the Australian economy. Governor Michele Bullock, in a press conference, stated that while the war and petrol pain were not the direct reasons for the hike, the central bank must now manage heightened inflation expectations. The RBA's primary tool for curbing inflation is to slow domestic demand by discouraging spending on other goods, effectively offsetting the inflationary impact of higher fuel costs. However, critics note that as a major energy exporter but a net oil importer, Australia is particularly exposed to these global price shocks, and rate hikes alone cannot resolve supply-side inflation driven by geopolitics. Despite the pressure on households, Governor Bullock left the door open for further tightening, warning that inflation would stay higher for longer. She emphasized the bank's commitment to its mandate and stated, 'If we have to change tack, we will,' asserting that the RBA is not aiming to put the economy into a recession. The move positions Australia as a lone mover on monetary policy, with millions of homeowners facing back-to-back blows from higher mortgage repayments and cost-of-living pressures.
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Australia central bank hikes rates to a near 1-year high as Iran war raises inflation risks
The decision on the hike though, was passed by a narrow majority ... Michele Bullock, governor of the Reserve Bank of Australia (RBA), speaks during a press conference in Sydney, Australia, on Tuesday, July 8, 2025. ... Australia's central bank on Tuesday raised benchmark policy rates for a second ...
RBA interest rate: Millions dealt back-to-back blows as Australia set to be lone mover amid Iran war
“We think overall – despite everything that is going on in the world and potential rate hikes today – that households are actually going into this relatively well-positioned on average.” · Read more from Newswire here. ... It’s a pretty safe bet to say Australians will face a rate ...
Australia is one of the biggest energy exporters on the planet, as the world's third-largest exporter of LNG and the biggest seaborne supplier of thermal and metallurgical coal. But when it comes to oil the country is horribly exposed. It will merely add to the pain inflicted on households by removing even more cash from their budgets. It's really the only weapon in the RBA arsenal, so it doesn't have a great deal of choice. Rate hikes ...
RBA interest rates live updates: Reserve Bank boss Bullock says war, petrol pain not reason for hike | The Nightly
The Reserve Bank of Australia is expected to raise interest rates by 25 basis points to 4. Homeowners already buckling under the weight of one interest rate rise in 2026 and a huge jump in the price of petrol will suffer yet more pain after the RBA lifted rates. ... It’s now Westpac and ANZ’s turn! ... Bullock fronts the press ... ... And a key detail from today’s decision ... ... Here’s what the RBA had to say ... ... And, as expected, it’s a hike...
The only thing that will bring ... interest-rate hikes will convince Iran to reopen that passage. "Instead, the RBA must manage inflation (and inflation expectations) by slowing the rest of the economy. "That means dissuading spending on other goods to offset the inflationary impulse from higher fuel costs." READ MORE: Police hunt more men after two charged over fatal shooting in Sydney's west · Commonwealth Bank of Australia head of Australian ...
But first, check out my latest column on how central banks may yet avoid rate hikes as they navigate potential oil‑driven inflation. And listen to today’s episode of the Morning Bid podcast, where I break down Australia’s hike versus global rate paths - plus a look at yesterday’s burst of AI‑chip optimism. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance ...
‘If we have to change tack, we will’: RBA hikes rates but not aiming to put Australia into recession, Bullock says | Reserve Bank of Australia | The Guardian
Follow our Australia news live blog for latest updates · Get our breaking news email, free app or daily news podcast ... The Reserve Bank has increased interest rates and left the door open to further hikes, warning inflation will stay higher for longer amid war in Iran and soaring petrol prices.
But before the outbreak of war ... for rate hikes. RBA deputy governor Andrew Hauser says central banks should not criticise normal government spending choices. In January and early February, they said the world's economies had been powering ahead recently. They said domestic demand had also been stronger than anticipated in Australia in recent ...
What we know for sure is that it's still anyone's guess whether the Reserve Bank hikes interest rates again in May. Hope you have a nice night — maybe relax with ABC TV??Loading ... The Australian dollar is steady as the bulk of the Asian trading session wraps and Europe comes online.
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