“While there have been encouraging signs on goods inflation abroad, services price inflation has remained persistent and the same could occur in Australia,” she said.

Those increases have added as much as $1450 in monthly repayments for borrowers on a typical $600,000 variable rate loan, according to RateCity data.īullock said there were “still significant uncertainties around the outlook”. Those increases added to the 300bp last year when the bank started lifting the cash rate from its record low 0.1% level in May – just prior to the federal election won by Labor. Of the 11 RBA board meetings in 2023, the bank lifted rates five times for a total of 125bp. Table showing the impact of a 0.25%-point hike in December: increase to monthly repaymentsīullock last month warned that inflation was increasingly driven by excessive demand at home rather than supply shocks from abroad, implying borrowers shouldn’t bank on an interest rate cut soon.