The RBA Lifts The Cash Rate To 1.85%
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The RBA Lifts The Cash Rate To 1.85%

The historic move is the first time the RBA lifted the cash rate by more than 1.75% in a four-month period since 1994.

By Kanebridge News
Tue, Aug 2, 2022Grey Clock < 1 min

The Reserve Bank lifted the official cash rate by another 0.5% for the third consecutive month today, raising the cash rate to 1.85% in an attempt to battle inflation.

The historic move marks the first time the central bank has lifted the cash rate by three consecutive 0.5% increments.

Further, the last time the RBA lifted the cash rate by more than 1.75% in a four-month period was in 1994, following two 1% hikes in October and December followed by a 0.75% lift in August of that year.

A statement by RBA Governor Philip Lowe outed the board’s want for inflation to return to the 2-3% range over time.

“The path to achieve this balance is a narrow one and clouded in uncertainty, not least because of global developments. The outlook for global economic growth has been downgraded due to pressures on real incomes from higher inflation, the tightening of monetary policy in most countries, Russia’s invasion of Ukraine and the COVID containment measures in China,” said Dr Lowe.

Inflation in Australia is the highest it has been since the early 1990s at 6.1% for the year to the June quarter, and in underlying terms it was 4.9%.

However, there is relief on the horizon, according to Dr Lowe.

“Inflation is expected to peak later this year and then decline back towards the 2–3 per cent range. The expected moderation in inflation reflects the ongoing resolution of global supply-side problems, the stabilisation of commodity prices and the impact of rising interest rates.”


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By Kanebridge News
Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.