Thanks for joining us today on Melbourne Cup Day for our live blog covering the Reserve Bank of Australia’s next cash rate decision.
The RBA board will make its announcement at 2.30pm (Australian Eastern Daylight Time), with a fifth 25-basis-point hike for this year almost a certainty.
That will take the cash rate to an 18-year high of 4.85 per cent as the Reserve Bank makes another attempt to put the lid on inflation.
While Melbourne Cup is usually a time of celebration, this year it’s likely to coincide with more mortgage pain for millions of Australians.
This year’s series of rate hikes is costing Australian households thousands in extra mortgage repayments. Another increase today will add to the burden.
Compared with the start of the year, Australians with the average home loan size of $730,719 will have to pay $538 more per month – $6,460 more per year – if the cash rate increases for a fifth time today.
That could have paid for up to six months of groceries for an average family of four or a modest domestic holiday.
Those with a $1,000,000 mortgage will see their repayments rise by $737 per month – a huge $8,840 per year – compared to what they were paying in January 2026.
Domain has spoken to mortgage holders who say they’ve increased work hours and cut spending to keep up with higher repayments.
One says his wife has moved from part-time to full-time work to help cover the extra mortgage repayments, reducing the quality of family time with their teenage children.
“For 12 years I’ve been the main breadwinner, and my wife has been the main carer for the kids,” he says. “Now she’s working full-time, she’s just not as available for them, and that’s been a real adjustment for our family.”
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