Big issues at play could cause the RBA to make smaller cash rate hikes

The RBA’s April stability report noted an ‘ongoing focus’ on risks from the housing market, but experts say there is still little hint the drop in property markets has prompted panic selling. Photograph: Mark Baker/AP

Six months ago, before the Reserve Bank of Australia began raising interest rates, it outlined the risks to financial markets, including the level of housing loans, with household debt relative to income already high, Russia’s invasion of Ukraine and even the need for enhanced cybersecurity.

On Friday, the RBA will release its half-yearly financial stability review just days after raising its cash rate for a record sixth consecutive month. Tuesday’s rate rise is tipped to be 50 basis points, taking the rate to 2.85%, marking the fastest run-up since 1994.