RBA interest rates: Reserve Bank raises official cash rate to 4.1% in blow to mortgage holders

Reserve Bank of Australia’s second consecutive increase lifts cash rate target to where it was in February last year

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The Reserve Bank has increased interest rates amid a global energy shock that threatens to push Australian inflation towards 5% in a split decision, leaving the door open to further hikes.

The hike takes the RBA’s cash rate target from 3.85% to 4.1%, back to where it was in February 2025, wiping out the relief offered by two cuts last year.