Mortgage holders know interest rates have risen over the past year, as the Reserve Bank of Australia (RBA) lifted the cash rate to fight inflation. But mortgage holders are not alone: governments and business borrowers are facing the same pressure.
Australia’s government now has to offer investors more than 5% on its 10-year bonds, which hit a 15-year high on Tuesday after a long period of low interest rates since the global financial crisis in 2008.
