Return of the hawk?

As was widely expected, this past fortnight the Reserve Bank of Australia (RBA) voted unanimously to increase the cash rate to 3.85%.

- By Jamie Williamson

The decision marked the first increase since late 2023 and the first move in either direction for six months. In terms of numbers, it adds about $115 a month to the average mortgage which currently sits near $700,000.

While the outrage was swift, the RBA's decision was no surprise.

There was already an outline of the writing on the wall for much of the second half of 2025 and the December CPI read not only filled that outline in but, given how discretionary spending over Christmas exceeded expectations, splashed a generous amount of sealant over the top for good measure.