‘A dark day’: Angus Taylor anticipates RBA rate rise will add to ‘tough time’ for mortgage holders
Opposition Leader Angus Taylor acknowledged the rate rise will compound the “tough time” facing millions of Australians. Speaking in Melbourne, he said:
Just talking to small business people and hearing about the tough time that we’re seeing right across Australia right now.
This is a dark day, a tough day for hardworking Australian families with a mortgage, those in small businesses, but more particularly households who have got a mortgage who are going to pay more as a result of this $1,400 a year in additional costs.
Taylor accused the government of exacerbating the pressure on Australians by increasing inflation with excessive government spending.
We know that this is a government that is spending too much. We also know it’s an economy that is not working and that drives up inflation and it drives up interest rates.
Labor’s spending has been much faster than the overall economy. Households and families are having to tighten their belts, but the government hasn’t tightened its belt and that drives up inflation and interest rates, and all Australians are paying a price for that.
The RBA has not rule out further rate rise this year
The RBA has not ruled out further rate rises before the end of the year, saying higher interest rates are necessary to bring inflation back to target.
Speaking in Sydney, Governor Michele Bullock said:
Higher interest rates are needed to ensure inflation returns to target.”
“We raised interest rates three times earlier in the year. A lot of that effect is still to flow through. This is one more. What we are predicting here is that this will be restrictive enough. Those interest rate increases bring things down.
Bullock said the board would raise interest rates again “if that’s what’s needed to get inflation down”, while acknowledging the impact on households and businesses.
Now, I know this decision is difficult for households with a mortgage and businesses with loans, but high inflation hurts all Australians, especially the most vulnerable.
Every household has seen how the price of everything has gone up in recent years. Pay packets don’t go as far as they used to and that’s why we need to stop this high inflation.
‘A dark day’: Angus Taylor anticipates RBA rate rise will add to ‘tough time’ for mortgage holders
Opposition Leader Angus Taylor acknowledged the rate rise will compound the “tough time” facing millions of Australians. Speaking in Melbourne, he said:
Just talking to small business people and hearing about the tough time that we’re seeing right across Australia right now.
This is a dark day, a tough day for hardworking Australian families with a mortgage, those in small businesses, but more particularly households who have got a mortgage who are going to pay more as a result of this $1,400 a year in additional costs.
Taylor accused the government of exacerbating the pressure on Australians by increasing inflation with excessive government spending.
We know that this is a government that is spending too much. We also know it’s an economy that is not working and that drives up inflation and it drives up interest rates.
Labor’s spending has been much faster than the overall economy. Households and families are having to tighten their belts, but the government hasn’t tightened its belt and that drives up inflation and interest rates, and all Australians are paying a price for that.
Macquarie Bank passes on interest rate increase after RBA decision
Macquarie Bank has announced changes to interest rates across its variable-rate home loans and everyday bank accounts from next month.
The announcement came less than an hour after the Reserve Bank decided to increase the official cash rate.
In a statement, the bank said:
Macquarie will increase variable home loan reference rates by 0.25% p.a., effective from 15 October 2026. Macquarie will also increase the ongoing variable interest rates paid on its transaction and savings accounts from 15 October 2026.
Chalmers says RBA decision 'make things tougher for a lot of people'
The treasurer, Jim Chalmers, says Australians are “under pressure” and has pointed to the conflict in the Middle East as a major driver of rising inflation. Speaking in Queensland, he said:
The Reserve Bank statement makes it really clear that we have an inflation challenge in our economy, which is made worse by the war in the Middle East.
The statement makes it abundantly clear that one of the main drivers of inflation in our economy is a conflict on the other side of the world, pushing up global oil prices and being felt right around our economy and indeed right around the world.
The war in the Middle East is not the only factor when it comes to our inflation challenge, but it is a very, very big factor.
Chalmers said Australians were paying a “hefty price” for the conflict.
I do understand that a lot of Australians are doing it tough and this decision today from the Reserve Bank will make things tougher for a lot of people.
Australians are paying a very hefty price for that war in the Middle East. And today that price became a bit steeper with this decision from the independent Reserve Bank.
So, we do take responsibility for our part of the fight against inflation. That’s why we will continue to manage the budget in a responsible way, roll out cost-of-living help in a responsible way and deal with these longer-term challenges as well.
Sarah Hanson-Young has confirmed she’s running for the Greens leadership.
Here’s more of her statement:
People deserve better than the failed policies and weak excuses from the Labor and Liberal parties and the hate peddling from Pauline Hanson’s One Nation.
Our communities and environment are being hammered by a rigged system and they want politicians that will fight for them.
RBA board unanimously voted to hike and is ready to lift rates again
The RBA’s rate-setting board, in its statement accompanying its decision today, has warned its fears about inflation were coming to fruition and it is ready to lift interest rates again.
The nine-member unanimously voted to lift rates to 4.6%, showing stronger resolve than ANZ and Westpac had forecast (each predicted a split vote).
It singled out a broadening Middle East conflict and strong AI-related demand for pushing up prices globally. Locally, inflation was higher than the RBA expected and businesses were either lifting their prices or looking to do so.
The board said higher fuel prices were partially being passed on to prices of other goods and services and it was possible the ongoing US war on Iran could push inflation still higher and drag global economic activity even lower.
The RBA has already lifted interest rates three times this year. The board said those hikes appeared to be slowing the economy but another was needed to bring too-high inflation back down “in a reasonable period”.
It warned it was not necessarily done moving rates:
The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed.
Reserve Bank hikes cash rate to 4.6%, the highest level since 2011
The Reserve Bank has lifted its key interest rate to 4.6%, its highest level since 2011, from 4.35%.
The widely expected fourth increase to the cash rate this year will add to repayment costs for millions of mortgage holders across the country.
Data to be released on Wednesday is expected to show underlying inflation rising at an annual pace of 3.6% for the third month running in August, well ahead of the RBA’s target range of 2% to 3%.
The RBA governor, Michele Bullock, has warned workers and businesses could lift their prices and wage demands as they start to expect persistent high inflation.
Before the decision, markets were predicting a further hike by February and more than a 50% chance of another by mid-2027.
Bullock will speak at 3.30pm AEST in Sydney to explain the decision.
Greens senator Sarah Hanson-Young has confirmed she will stand for the party’s leadership.
In a statement posted to social media in the past few minutes she said she was “shocked and saddened” by outgoing leader Larissa Waters’ decision to quit.
I know this was an incredibly difficult decision for her and my thoughts are with her and her family.
Larissa has given so much to our movement and to the parliament and we wish her a full and speedy recovery. We look forward to welcoming her back as a fulltime senator when she is ready.
I am speaking with my colleagues about the best way to help the Greens and have asked for their support to be the next leader.