In a tight 5-4 vote, the Reserve Bank of Australia hiked its cash rate to 4.10 per cent, citing inflation at 3.8 per cent headline and 3.4 per cent trimmed mean—both over the 2-3 per cent band—plus rising expectations and capacity pressures.
The decision unfolded against the Iran war that erupted on February 28, driving up petrol prices and adding risks, while unemployment stayed at 4.1 per cent.
Treasurer Jim Chalmers noted the family toll but pointed to relief measures and ACCC probes into fuel price hikes by suppliers like Ampol and BP; opposition figures blamed government spending, as banks passed on higher costs raising typical $500,000 loan repayments by $80 monthly.
