‘Recession like’ feeling: Inside the RBA’s fifth rate hike

Expectations for rate cuts next year have dwindled quickly as the end of 2026 approaches, with the Reserve Bank warning households are likely to feel like they are living through a recession.Governor Michele Bullock laid down several grim observations to Australians on Tuesday, facing media after a landmark meeting of the RBA’s monetary policy board.Members voted 6-3 to hike the cash rate to an 18-year high of 4.85% on Tuesday in a decision that, while expected, is attracting backlash and criticism.Mortgage holders are set to feel the pinch particularly, with repayments on a $750,000 home loan to rise by around $120 per month.Ms Bullock used her Tuesday press conference to confirm Australia’s own domestic problems with inflation at the back end of last year are now being viewed as more damaging than previously thought.It is consumer and government spending which has led to a misbalance of supply and demand that the RBA now says is the main reason for tightening monetary policy.RBA governor Michele Bullock says Australians will feel they are in a recession. Picture: Nikki Short“I want to be very clear that we are not tightening because of the direct impact of oil prices on inflation...