Nine To Noon Australia: Rates up, unhappy Opposition family, Hertzog protest, party poopers
Feb 3, 2026
Karen Middleton, Australia-based political journalist and correspondent, breaks down the Reserve Bank’s 0.25% rate hike and what it means for the economy. She unpacks tensions in the Coalition, Nationals-Liberals splits and shifting conservative support. Karen also outlines the extended protest ban in Sydney for President Herzog’s visit and the cancellation of a major Mardi Gras afterparty.
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First Rate Rise In Two Years
- The Reserve Bank raised rates 0.25% to 3.85%, the first hike in two years, and banks quickly matched the rise.
- The bank warns more increases are possible as private spending, not just government fiscal policy, is driving inflation pressure.
Prepare For Rising Mortgage Costs
- Borrowers should expect higher mortgage costs as banks lift rates in line with the Reserve Bank.
- Prepare for the possibility of one or more further rate rises in the first half of the year.
Private Spending Driving Inflation
- The Reserve Bank attributes rising inflation mainly to increased private household and business spending.
- That shifts the policy debate onto fiscal restraint as monetary policy tightens further.