RBA Raises Rate to 4.35%, Banks Pass On Hike Pressuring Australia 200

The Reserve Bank of Australia hiked its cash rate by 25 basis points to 4.35%—its third straight increase—with major banks like the big four and Macquarie fully passing on the rise to variable home loans. This caps a period of mixed signals: March building approvals plunged 10.5% m/m (prior +29.7%) but rose 12% y/y, investor lending surged $42bn (9.6% y/y, fastest since 2015) offsetting 6.2% owner-occupier growth, job ads dipped 0.8% m/m, and April Services PMI expanded to final 50.7 from 46.3. Tighter conditions threaten household spending and Australia 200 amid RBA's inflation vigilance.