Pumped Up Kicks, Super Bass and Moves Like Jagger were blasting from your car radio. We watched the final Harry Potter movie, and William and Kate said ‘I do’ in front of hundreds of millions on live TV. Virgin Blue rebranded as Virgin Australia. And the cash rate was last above 4.50%, until yesterday.

In today’s newsletter, we’re going to take a close look at what the RBA’s call yesterday means for you, and then take you to the big credit card decision that’s just around the corner.

The quote: “The government has been increasing restrictions on our ability to strike. They tell us we are too essential to be off work for four hours, but not essential enough to provide safe working conditions or appropriate pay to.”
A statement from Grant Forsyth, the Director of Workplace Relations at AMA Victoria, on why doctors in Victoria will be on a statewide strike tomorrow for the first time in 20 years.

The stat: $276.5 million. The loss recorded by Myer during the last financial year – its second-largest loss in history. The company attributed part of the loss to the ongoing cost of living pressure, saying it is “weighing heavily on consumer sentiment”.

The graph:

The ASX 200 tracks the 200 largest companies listed on the Australian share market. In the past month, the ASX 200 has fallen by 4.0%. This is due to expectations of the Reserve Bank of Australia increasing rates to their highest level in 15 years (which was confirmed yesterday) as well as the Middle East conflict pushing up oil and energy prices.

Have you ever tuned into the news, seen the headline “The RBA just increased interest rates” and wondered how it affects you? After all, if you don’t have a mortgage, why should you care?

Well, while the effect on mortgages takes up most of the news, there are other, lesser-known ways the RBA’s decision affects the economy and you.

On Tuesday, the RBA decided to raise the cash rate from 4.35% to 4.60% to help bring inflation down to its 2–3% target. This rise flows through to the rest of the economy, by making it more expensive to borrow.

But the RBA increasing interest rates also impacts the economy in ways you may not expect.

If you have a savings account with a bank or a credit union, a rate increase may mean you earn more interest. Banks aren’t required to pass this on to savers, but when they do, they’re often slower than they are with loans.

If you’re planning any overseas trips, you could save yourself some money if you time it well with the RBA announcing an increase!

When a country’s interest rate rises, it can also increase their exchange rate. This is because the higher interest you’re now earning on your savings account is also attracting foreign investors. And to be able to invest in Australia, they need to buy Australian Dollars (AUD). This increase in demand for the AUD makes it more valuable, increasing the exchange rate.

But be careful - this principle applies for other countries as well. For example, the U.S. increased their interest rates last week, after which the AUD fell.

If you’re having trouble finding a new job in the current climate, rising interest rates can make it even worse.

This comes back to what the RBA is trying to achieve by increasing interest rates. The ultimate goal is to slow inflation, but to get there, the RBA needs spending and borrowing to slow. This slowdown applies to businesses as well, not just individuals.

If you’ve been looking to enter the housing market, you might have noticed fixed rates creeping up even before the RBA announced its decision, while variable rates only move after it.

Banks set fixed rates based on where they expect interest rates to go, not where they currently are. When banks expect the RBA to raise rates, the fixed rates on offer already incorporate that expectation. This is because fixed rates last between one and five years, so banks need to prepare for what the RBA might do before they commit to an offering.

While people on fixed rates won’t be affected by increased interest rates, people whose fixed rates are about to expire and those looking to fix their rates are affected.

Reporting by Adam Wan.

Picture this: You’ve just ordered an oat flat white at your local cafe. The chalkboard menu says it is $5 but when you tap your card, you pay $5.07.

From tomorrow, that extra $0.07 is no more. The Reserve Bank of Australia (RBA) is banning businesses from adding card surcharges.

Here’s what you need to know.

At the moment, if you pay for things using your card, you usually have to pay a 1–2% surcharge.

This is because banks (or payment companies like Square or Tyro) charge businesses a fee for accepting card payments, which many businesses passed on to customers.

RBA data tells us that Australian consumers are paying $1.2 billion a year in card surcharges. The RBA began reviewing card surcharges in 2024, amid growing concern about the rising cost of living.

From tomorrow, the RBA will ban businesses from charging you extra for paying by card. This means if the menu price is $5, you can’t be charged $5.07 when you pay using your card.

The ban covers payments using eftpos, Visa and Mastercard, including debit and credit cards.

Businesses will still pay fees to their bank or payment company. They are just not allowed to pass them on.

Some businesses have indicated they may raise their prices to cover these fees or lower their margins.

The Council of Small Business Organisations Australia (COSBOA) has stated the changes will apply further pressure to small businesses.

“There is no such thing as a cost that simply disappears. It either comes out of an already tight margin [or] has to be recovered somewhere else,” said COSBOA CEO Skye Cappuccio.

“Some may be able to absorb some or all of the cost, while others may need to review their overall pricing,” she added.

The RBA is also lowering the cap on interchange fees. These are the fees a business’ bank pays to the customer’s bank when a card is used.

The cap is the maximum a bank can charge in these fees. The RBA expects this change to lower businesses’ costs when they accept cards.

The RBA said credit card issuers (mostly banks) use interchange fees to fund rewards programs like Qantas or Velocity frequent flyer points.

Due to these changes, several banks have flagged that they will cut rewards and raise credit card fees.

Tomorrow’s changes are part of a larger set of reforms that will take effect in stages.

On 30 October, card networks and large payment providers must publish their card payment fees online to improve transparency.

On 30 January, large payment providers must show how the lower fees have been passed on to businesses.

On 1 April 2027, the cap on interchange fees extends to overseas cards acquired in Australia.

Reporting by Adam Wan.

Only 3% of Australia's medical research funding goes towards women's health issues.

If that makes you feel hysterical, you're not alone. Swisse gets it: that's why they've launched HYSTERIA, a platform reclaiming the word and pushing for real conversation and funding for women's health. Their Ultiboost range backs that up, with support for everything from PMS and hormones to vaginal health and mental clarity, at every life stage.

A Queensland man has been fined a total of $1,617 for travelling in a part of a car not designed for passengers and for failing to wear a seatbelt.

Where was he sitting in the car? Sitting might not be the correct word. Police found him lying next to a fridge, with the rear door partially open. (See picture attached)

The driver was also fined $690 and lost three demerit points for driving through a red light.