Australian homeowners are hit with a FIFTH rate rise this year as borrowing costs reach an 18-year high

The Reserve Bank of Australia lifted its cash rate by 25 basis points to 4.85% on Tuesday, its fifth rise this year, driven by persistent inflation partly attributed to Middle East conflict disrupting global oil supply. The 6-3 board split — narrower than markets expected — signals the tightening cycle may be nearing its end, with traders now wagering on a pause in December.

For a borrower with a $600,000 mortgage, the five hikes together add $456 to monthly repayments.

The RBA dropped its previous language warning of further rises if needed, pushing the Australian dollar 0.3% lower.

Judo Bank's Warren Hogan warns a worst-case scenario of six more hikes could push the cash rate to 6.5% and tip Australia into recession.