Bullock doesn’t see ‘economy cracking at this point’ – as it happened
News Source
•Tue, 03 Nov 2026 06:33:51 GMT
📰 What Happened
The Reserve Bank lifted the cash rate to 4.85% on Tuesday, its fifth increase this year. Six board members voted for the rise and three wanted to hold.
Governor Michele Bullock said the decision was not the news many Australians wanted. She argued that acting now would prevent even worse pain later. She added that she does not see the economy cracking at this point.
Treasurer Jim Chalmers called it difficult news for people already paying a hefty price. The share market ended the day higher.
🔍 The Backstory
The cash rate sets the cost of borrowing across the economy. Banks usually pass rises on to mortgage holders within days. The rate is now the highest since 2008, when the global financial crisis began.
The RBA meets several times a year and publishes its reasons. Inflation, wages and jobs data all feed into the decision. Some economists have criticised the bank for moving too slowly.
🎯 Why It Matters
A single decision by nine people changes what millions of households pay each month. Knowing the reasoning helps people plan their budgets.
The Reserve Bank lifted the cash rate to 4.85% on Tuesday, its fifth increase this year. Six board members voted for the rise and three wanted to hold.
Governor Michele Bullock said the decision was not the news many Australians wanted. She argued that acting now would prevent even worse pain later. She added that she does not see the economy cracking at this point.
Treasurer Jim Chalmers called it difficult news for people already paying a hefty price. The share market ended the day higher.
The cash rate sets the cost of borrowing across the economy. Banks usually pass rises on to mortgage holders within days. The rate is now the highest since 2008, when the global financial crisis began.
The RBA meets several times a year and publishes its reasons. Inflation, wages and jobs data all feed into the decision. Some economists have criticised the bank for moving too slowly.
A single decision by nine people changes what millions of households pay each month. Knowing the reasoning helps people plan their budgets.