The Reserve Bank of Australia has raised the cash rate to 4.35 per cent, marking its third increase of 2026 as the ASX 200 fell to a 20-day low.
Key Points
- The cash rate increased by 0.25 percentage points to 4.35 per cent in May.
- The ASX 200 index closed down 0.2 per cent at 8,680 points.
- Commonwealth Bank confirmed it will pass the 0.25 per cent hike to variable home loan rates starting May 15.
- The RBA forecasts headline inflation to peak at 4.8 per cent mid-year, with economic growth expected to halve to 1.3 per cent.
- Unemployment is projected to rise from 4.3 per cent to 4.7 per cent over the next two years.