Reserve Bank

The Reserve Bank of Australia (RBA) is Australia's central bank, responsible for maintaining price stability and full employment. It's newsworthy due to its recent decisions regarding interest rates and their impact on the Australian economy. Recent developments include the RBA's decision to implement a rate hike, justified by the bank as necessary to cool down what it perceives as an overheating economy. However, this decision has been met with criticism, as many Australians are struggling with the rising cost of living. Financial markets are now predicting further rate hikes in 2026, which could negatively affect mortgage holders but potentially moderate the property market. The RBA's actions are particularly relevant as the government makes difficult budget decisions, including ending energy bill rebates, adding further pressure on households already facing financial strain.