At its meeting today, the Board decided to maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent. Inflation has increased sharply in many parts of the world. Ongoing supply-side problems, Russia's invasion of Ukraine and strong demand as economies recover from the pandemic are all contributing to the upward pressure on prices. In response, bond yields have risen and expectations of future policy interest rates have increased. The Australian economy remains resilient and spending is picking up following the Omicron setback. Household and business ... (full story)

The Reserve Bank has left the official cash rate on hold near zero, but borrowers are already bracing for what life may look like with higher mortgage interest rates. Australia's benchmark interest rate has now been at 0.1 per cent since November 2020, and has not risen since November 2010. However, most analysts expect an interest rate rise by August, with some expecting the first rate increase in June, and a few even suggesting it could happen next month. Analysis by financial comparison website RateCity shows that a borrower with 25 years left on a $500,000 mortgage can expect to pay just over $300 a month in ... (full story)