Welcome to our live updates on today’s interest rate decision from nine.com.au.
The Reserve Bank’s monetary policy board is concluding its May meeting, where a third consecutive rate hike is anticipated within the next two hours. This adjustment would raise the official cash rate target to 4.35 per cent—returning to the level it stood at before the series of cuts last year, which now feel like a distant memory for borrowers facing rising living costs.
Despite the strong expectation of a rate increase, there may be a glimmer of hope for mortgage holders and businesses alike. While the major banks are largely predicting a hike—Westpac has even suggested the possibility of two additional increases—the market currently estimates a 25-30 per cent likelihood that the rates could remain unchanged this afternoon.
Stay tuned as we deliver comprehensive coverage leading up to the Reserve Bank’s official announcement and provide analysis of its implications thereafter.