RBA interest rates: Bullock says ‘pain now’ will prevent worse later as Reserve Bank hikes rates for fifth time

The decision marks the fifth rate hike delivered by the central bank in 2026, intensifying pressure on mortgage holders and indebted households across the country. According to the central bank, the tightening cycle aims to combat persistent inflation pressures.

Despite the additional pressure on consumers, indicators suggest the central bank may pause subsequent increases over the summer months to assess the full economic impact of the accumulated hikes. Meanwhile, federal officials continue to navigate budgetary pressures ahead of the mid-year budget update in December.