The Reserve Bank of Australia has raised the cash rate to 3.85% for the first time in over two years, marking a significant shift in monetary policy.
This rate rise responds to inflation reaching 3.6% and will directly impact mortgage holders through higher borrowing costs. While first-home buyers may face affordability challenges, strong population growth and chronic supply shortages continue to support fundamental housing demand. The rental market is expected to remain resilient with continued growth potential as economic fundamentals stay robust.
- First rate rise since 2024 as inflation exceeds target range
- Direct impact on borrowing costs and housing affordability
- Rental market expected to remain resilient with continued demand
- Economic fundamentals support long-term growth trajectory




