RBA Raises Rates to 4.35%, Housing Market Shows Cooling Signs Amid Rate Hikes

According to RBA Governor Philip Lowe on June 4, the Reserve Bank of Australia's rate-hike measures are beginning to show effects in the economy. The RBA has raised rates three times this year to bring the benchmark rate to 4.35%, aiming to curb resurging inflation.

The housing market is already showing signs of cooling as a result of monetary policy tightening, Lowe said. Money markets expect the RBA to hold rates steady at its June meeting, with an approximately 50% probability of a rate hike in August and a nearly 0% chance in December.