Reserve Bank warns of more interest rate rises and ‘large increases in rents’ amid inflation crisis

The Reserve Bank governor, Philip Lowe. The RBA minutes warn of further interest rate increases in the new year and ‘further large increases in rents’. Photograph: Dean Lewins/AAP

The Reserve Bank has put homeowners on notice that they face further interest rate increases in the new year if inflation continues to rise and spending remains unchecked over the holiday period.

The bank’s final meeting minutes for 2022 reveal it is on a mission to lower inflation amid concerns about higher spending over summer holidays without Covid restrictions.