RBA Expected to Lift Cash Rate to 18-Year High: Fifth Hike of 2023

The Reserve Bank of Australia is poised to raise the official cash rate to an 18-year high on Tuesday, marking the fifth increase this year and intensifying cost-of-living pressures for households. Treasurer Jim Chalmers acknowledged the strain on Australians, noting that if rates go up, 'that will make things much harder,' especially with previous hikes yet to fully flow through the economy. The RBA's decision comes as the government prepares its mid-year budget update in December, with Chalmers committing to further savings. He said savings have been found in all eight previous updates and 'there’ll be savings in the ninth as well.' The central bank's move aims to curb inflation but risks slowing an economy already under pressure. With the full impact of earlier tightening still pending, borrowers face a challenging period ahead.