Reserve Bank lifts cash rate to 4.85% in split 6-3 vote

The short version

• The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85% on Tuesday, its highest level since 2008.[CNBC]
• The decision was split, with six members voting to raise rates and three voting to hold.[CNBC]
• NSW Premier Chris Minns has warned the expected increase would force job losses and business closures.[The Guardian]
• Governor Michele Bullock has argued the hike will prevent worse hardship later, while Canstar reported a $107 monthly rise on a $700,000 loan.[The Guardian]

Key facts

• The Reserve Bank of Australia raised its benchmark cash rate by 25 basis points to 4.85% on Tuesday, the highest level since November 2008.[CNBC · The Guardian]
• The RBA board decision was split, with six members voting for the increase and three opting for a hold.[CNBC]
• NSW Premier Chris Minns warned an expected interest rate increase would force job losses and business closures.[The Guardian]
• RBA Governor Michele Bullock said that some pain now will prevent even worse pain later.[The Guardian]
• Canstar reported the latest rate rise will lift the monthly interest payment on a $700,000 home loan by $107.[The Guardian]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Minns warns expected RBA rate rise will see ‘shops close that don’t reopen’ as pressure mounts on PMThe Guardian - World
• Australia hikes rates to 18-year high to fight inflationCNBC
• RBA interest rates: Bullock says ‘some pain now’ will prevent worse pain later as Reserve Bank hikes rates for fifth timeThe Guardian - World