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ABC Business Daily

A rate rise

5/5/202619 min

Another rate hike is here, with the Reserve Bank lifting the cash rate to 4.35 per cent and wiping away the policy easing delivered last year.

The RBA says fuel-driven inflation linked to the Middle East conflict is adding to price pressures across the economy, and that inflation is now likely to stay above target for longer. 

So what does that mean for mortgage holders, inflation, and the path ahead?

Carrington Clarke and ABC News Business Editor Michael Janda break it all down on ABC Business Daily.

Got a burning business question?

Send a short voice recording to Carrington and the team at abcbusinessdaily@abc.net.au

Clips

Walking A Wafer-Thin Path
Recession Odds If Strait Stays Shut
Two Painful Paths Ahead
Will They Hike Again?
Why Did Eight Vote Yes?
Inflation Down Later, Despite War

Transcript preview

First 90 seconds

  1. Carrington Clarke· Host0:00

    [upbeat music] ABC Listen, podcasts, radio, news, music, and more [upbeat music] If I had to pick one word to describe America's history in the Middle East, I'd probably go with mistake But it was, the Americans believe, all a dreadful mistake The backpackers crossed the poorly marked border by mistake The war in Iraq was a big, fat mistake So why is it happening again?

  2. Matt Bevan0:26

    I'm Matt Bevan, and on my show, If You're Listening, we actually try to learn from the world's mistakes. Find us on ABC Listen or wherever you get your podcasts.

  3. Carrington Clarke· Host0:34

    Well, the Reserve Bank has hiked interest rates again, the third hike of the year, and pushing the cash rate to 4.35%. With inflation running too hot, in part because of the unresolved war in the Middle East, the bank determined it needed to do what it could to bring down demand. But does this rate hike push the economy closer towards a potential recession? Welcome to ABC Business Daily. [upbeat music] I'm Carrington Clark.

  4. Michael Janda· Guest1:07

    And I'm ABC business editor Michael Janda.

  5. Carrington Clarke· Host1:10

    Michael, we're in different surrounds this time. We're in the Reserve Bank. We've been here the past couple of hours. We've been- We've had sandwiches and- We've had sandwiches [laughs] ...

  6. Michael Janda· Guest1:19

    water We have been deprived of our phones for that period because we had market sensitive information, which was this statement- But not the rates decision But not the rates decision, that's right.

  7. Carrington Clarke· Host1:29

    We found out e-

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