“RBA hikes interest rates to an 18-year high, warning inflation will hurt for another year”

Key points

• RBA increases cash rate to 4.85% from 4.6%, highest since 2008 crisis.
• Five rate increases this year total 1.25 percentage points.
• Inflation forecast revised higher, expected to stay above 3% through 2027.
• Unemployment expected to rise to 5.1% by end-2028, up from 4.7%.
• Mortgage repayments likely rise about $600 extra per month overall this year.