The Reserve Bank raised its key interest rate on Tuesday, from 4.35% to 4.6%. That is the highest level since 2011 and the fourth rise this year. Shane McClymont heard the news in a text from his wife. She asked if the family could still afford their son's birthday takeaway dinner. The story was reported on 30 September 2026.
For a new mortgage of about $731,000 at a typical rate of 6.2%, the rise adds about $119 to monthly repayments. That takes them to about $4,477. Many families have already cut spending on streaming, food and petrol. The bank has warned it may raise rates again if needed. The bank's board voted unanimously for the rise.
The rise means bigger loan repayments for millions of mortgage holders. It puts fresh pressure on household budgets.

The Reserve Bank raised its key interest rate on Tuesday, from 4.35% to 4.6%. That is the highest level since 2011 and the fourth rise this year. Shane McClymont heard the news in a text from his wife. She asked if the family could still afford their son's birthday takeaway dinner. The story was reported on 30 September 2026.

For a new mortgage of about $731,000 at a typical rate of 6.2%, the rise adds about $119 to monthly repayments. That takes them to about $4,477. Many families have already cut spending on streaming, food and petrol. The bank has warned it may raise rates again if needed. The bank's board voted unanimously for the rise.

The rise means bigger loan repayments for millions of mortgage holders. It puts fresh pressure on household budgets.

📰 Source: News Source
theguardian.com ↗
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