Millions of Australian mortgage borrowers are facing another sharp increase in household costs after the Reserve Bank lifted interest rates to their highest level in almost 15 years.

The RBA board unanimously increased the cash rate by 25 basis points to 4.6 per cent on Tuesday, raising concerns that households could face even more rate hikes before Christmas.

The decision pushed the cash rate to its highest point since 2011 and marked the fourth interest rate rise borrowers have endured in 2026.

Canstar estimates that, if lenders pass on the full increase, monthly repayments will climb by around $91 for a $600,000 mortgage, $114 for a $750,000 loan and $152 for a $1 million mortgage.

The combined effect of the increases is considerably more severe. Four rate rises this year have added roughly $364 a month to repayments on a $600,000 mortgage and about $606 a month on a $1 million loan. Over a year, that equates to approximately $4,400 and $7,300 respectively.

In its statement explaining the decision, the Reserve Bank declined to rule out further tightening, warning it was prepared to raise rates again if inflation failed to ease sufficiently.

The central bank cited higher international oil prices, the ongoing conflict in the Middle East and evidence that businesses were still passing rising costs on to consumers.

Although the RBA left rates unchanged in August, governor Michele Bullock said she ‘doesn’t like people losing their jobs’. However, she has also indicated that a weaker labour market and higher unemployment could be necessary to bring inflation back under control.

Critics say the consequences of higher interest rates will extend beyond mortgage stress, warning that slowing economic activity could cost Australians their jobs.

Australian Council of Social Service chief Cassandra Goldie said rate increases would put employment at risk, with the greatest impact felt by people who lose work or cannot secure enough paid hours.

‘Since interest rates started to increase, an extra 200,000 people are out of paid work,’ she said.

‘We cannot know with certainty what effect another rate rise will have on unemployment over the next year.

‘A move towards, or above, 5 per cent would create a human disaster, shutting people out of work for years and leaving them dependent on grossly inadequate income support payments.’

Those who lose their jobs may be forced to rely on JobSeeker, which currently provides $417 a week. That is equivalent to only 41 per cent of the minimum wage and remains well below the national median rent of $703, according to the latest SQM Research figures.

Asked about ACOSS’ concerns on the ABC, Treasurer Jim Chalmers said he did not expect the flow-on effects to be as serious as the organisation had suggested.

‘It is possible to maintain full employment and low unemployment while also achieving lower and more stable inflation,’ he said.

‘That is the Reserve Bank’s objective, and it is the government’s objective as well.’

Despite concerns about the impact on jobs, economists said inflation remains too high for the RBA to declare victory. 

REA Group senior economist Eleanor Creagh said underlying inflation has been running at 3.6 per cent, well above the RBA’s 2 to 3 per cent target.

‘Higher mortgage repayments will weigh on discretionary spending at a time when households are already contending with elevated living costs, although resilient employment and incomes continue to provide an important buffer,’ she said.

‘The economy has slowed, but not enough to give the RBA confidence that inflation will return sustainably to target without further tightening.’

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Ms Creagh said the rate rise will drive down home prices and sales activity further. 

‘While structural housing undersupply remains a long-term support for prices, in the near-term, affordability constraints, higher borrowing costs and weaker buyer demand are likely to keep downward pressure on prices,’ she said.

Beyond its impact on the housing market itself, the rate rise is also expected to make buying a home even harder for those trying to get a foothold.   

Domain chief residential economist Dr Nicola Powell said the rate rise will push home ownership even further out of reach for many Australians, particularly first-home buyers already facing significant affordability challenges.

‘Every increase in interest rates reduces the amount buyers can borrow, limiting what they can afford to pay and pushing some aspiring homeowners out of the market altogether,’ she said.

‘For many, that means delaying their plans while they save a larger deposit or work to meet stricter lending requirements.’

Dr Powell said Sydney and Melbourne could be hit hardest by another rate rise just as the market was behinning to show early signs of stabilisation, however, she said the bigger challenge is what higher rates could mean for future housing supply. 

‘The risk is that today’s fight against inflation becomes tomorrow’s housing shortage,’ she said. 

‘Building approvals remain subdued, but that’s not because construction activity has disappeared. Housing is increasingly competing with infrastructure, renewable energy and data-centre projects for the same workers, materials and resources. 

‘Australia’s construction industry only has so much capacity. As labour and materials are drawn into other major projects, it becomes harder and more expensive to bring new housing developments to market.  

‘Higher rates may help cool demand in the short term, but they can also make it harder to increase housing supply and address Australia’s long-term housing shortfall.’

There are already signs higher borrowing costs are biting, with new figures showing Australians are cutting back on non-essential spending. 

The latest spending figures from the ABS suggest cash-strapped households are cutting back on discretionary items such as clothing, furniture and recreation, reinforcing the RBA’s view that consumer demand remains subdued as it weighs future rate decisions. 

Head of business statistics Tom Lay said recreation and culture spending saw the largest fall, down 1.4 per cent, after months of higher spending associated with major sporting events.

‘Clothing and footwear, recreational goods, food, health, and furniture also fell,’ he said.

‘These falls were offset by higher transport spending – up 2.3 per cent – leaving overall household spending unchanged from July.

‘Both fuel spending and new vehicle sales contributed to this rise, especially electric vehicles sales as households respond to rising fuel prices.’

University of Sydney economics senior lecturer Dr Luke Hartigan said recent commentary by senior officials indicate the Bank is losing tolerance with persistently high inflation which has been above the RBA’s target band for over 4 years. 

‘The RBA is worried, if this continues, households and businesses will start to expect higher inflation which will feed into prices, causing more inflation, creating a difficult cycle to break,’ he said.

‘At the same time, the labour market remains relatively tight, and many businesses are struggling to increase output because they are already making full use of their staff and resources, suggesting inflationary pressures remain an issue even after the three recent increases. 

‘With another rate increase by the RBA expected in November, the outlook for the local economy points to further downward pressure on housing prices, higher servicing costs for existing mortgage holders, an uptick in the unemployment rate, and a slowdown in economic activity.’

The L’Oréal Paris runway show remains one of the most glamorous highlights on the Paris Fashion Week calendar.

Supermodels Kendall Jenner, 30, Cara Delevingne, 34, and Heidi Klum, 53, led a star-studded cast of women onto the runway in front of the Eiffel Tower on Monday night.

The star-studded Le Défilé 2026, titled Express Your Worth, was held at Place Joffre in the French capital. Celine Dion delivered a surprise performance at the finale, closing the show with her hit I’m Alive.

The 58-year-old singer is currently making her comeback in Paris after Stiff Person Syndrome (SPS) forced her to cancel her previous tour in 2023.

Celine appeared to relish the celebratory moment, dancing alongside the runway stars after changing into a glamorous strapless velour gown for her surprise finale.

Kendall made a striking entrance in a semi-sheer black dress as she opened the show alongside fellow L’Oréal Paris ambassadors Eva Longoria, 51, Jane Fonda, 88, and Viola Davis, 61.

The Kardashian-Jenner mogul revealed a glimpse of her underwear and flashed some leg in the thigh-high split dress.

Cara captivated the crowd in a dazzling red cape gown as she took her turn on the runway.

German model Heidi Klum commanded attention in a plunging glittering dress finished with a bold thigh-high split.

Simone Ashley, 31, and Andie MacDowell, 68, were also among the stars to walk the runway in glamorous gowns.

Kristen Bell joined the catwalk for the first time this year in her new role as a L’Oréal Paris ambassador.

They were joined by inspiring women, ambassadors from around the world, and leading talents, all coming together to promote a powerful message of empowered beauty and sisterhood.

Paris Fashion Week began on Monday, with designers including Victoria Beckham and Saint Laurent set to present their Spring/Summer 2027 collections. Louis Vuitton is scheduled to close the event on October 6.

Kendall opened the show for the first time in September 2026, securing the opening role for a second consecutive year.

She became a global brand ambassador for L’Oréal Paris in July 2023 and made her first appearance for the brand several months later.

After the fashion show had concluded, the catwalk appeared to be over before Celine emerged from the darkness to huge applause from the audience. 

Belting out her hit song, she was then joined on stage by the night’s ensemble as they danced alongside the star. 

The superstar is in the French capital for a five-week residency – after she recently shared that she has decided to make her devastating health battle ‘my reason for living’. 

The singer revealed in December 2022 that she had been diagnosed with SPS, or SPS, which causes muscle stiffness and painful spasms.

At its worst, the debilitating condition left her unable to walk properly or use her singing voice as she once had.

In 2024, Celine made a promise: ‘I’ll sing again.’

She continued: ‘I made a promise to be back on stage. So here I am, singing for you and singing for me, singing live! Thank you so very much for your support, your patience and if I may say so, I am everything I am because you loved me,’ she then said in English.

Speaking of the uphill battle she waged with her health, she said: ‘By living with it day in and day out, I’ve come to terms with it. And I’ve decided to make it my reason for living.’

She continued: ‘But look around here – all around you, right here in this room – we don’t know what the person next to us is going through.  

‘There are people going through hardships, grief and sorrow. There are people radiating energy and joy. So let’s take that energy and share it. That’s what music is for. Tonight, we’ll sing, we’ll dance and we’ll celebrate.’

A former teacher at Sydney’s prestigious Newington College has been charged with allegedly raping and sexually touching a student after using an electronic device to groom the alleged victim.

Deandra Kontou, 32, was arrested last week over allegations that she sexually assaulted and groomed a student in her care. Detectives believe the alleged victim was under 16 when the offences occurred.

Kontou, who taught at the all-boys private school for two years before leaving in 2019, faces nine sex-offence charges following a lengthy investigation.

The allegations include aggravated sexual assault of a person under the accused’s authority, grooming a child for unlawful sexual activity, and aggravated offences involving inciting sexual acts, sexual touching and using a carriage service to groom a child for sex.

Kontou was granted conditional bail last week and allowed to return to her home in Sydney’s south. Property records indicate the house is valued at $1.8 million.

She is due to appear before Burwood Local Court on November 25.

Under her strict bail conditions, Kontou must report weekly to Sutherland Police Station, surrender her passport and stay away from international points of departure, including within 500 metres of them.

She is also prohibited from entering schools or taking teaching roles involving contact with children. Kontou must not contact the alleged victim or prosecution witnesses, and cannot be alone with a child unless another adult is present.

The Daily Mail can reveal that Kontou was newly married when she joined Newington College, where annual secondary-school fees begin at $44,000.

Only months earlier, Kontou—known as ‘Miss Dee’ in a post by her gym—had been working to lose weight ahead of her wedding to her husband, George, who has since deleted his LinkedIn account.

In a February 2018 post about her weight loss, her personal trainer praised Kontou’s regular attendance at personal-training sessions and independent workouts while managing “a busy school teacher” role and growing responsibilities.

The trainer said Kontou had begun a new four-part programme centred on weight training to enhance her natural shape, describing her as “the princess of weight loss”.

In a separate post, the trainer commended Kontou for maintaining her gym routine while balancing a busy working life as a school teacher and after-hours tutor.

When the Daily Mail sought comment from family members on Tuesday, some denied having any connection to Kontou.

A woman who identified herself as Kontou’s sister-in-law—the sister of her husband, George—said she would prefer the reporter not to “stalk” her Facebook account and declined to comment further before ending the call.

The allegations are not the first controversy to involve the private school. In 2023, Newington announced plans to admit girls, prompting some parents and alumni to launch legal action in the NSW Supreme Court.

Lawyers claimed the school was formed to teach males, pointing to a trust deed from 1873 that described Newington College as ‘an efficient college for youth’.

They argued the term ‘youth’ was limited to the advancement of education of boys and young men.

A judge dismissed the matter in May 2025, ruling the word ‘youth’ in the trust deed was used in a gender-neutral sense.

In March, a music teacher was sacked after he was accused of offering to pay a teenage girl for sexual material.

Benjamin David Collinge, 29, was later arrested and charged with using a carriage service to groom a child under 16 for sex, and using a carriage service to access child abuse material.

Collinge had been providing classroom support in the music department at Newington College on a casual basis.

A Newington spokesperson told the Daily Mail: ‘As this matter is before the Courts, we are not able to provide any further comment at this time.’

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Mugshots show an elderly California couple with solemn expressions after they were accused of fatally shooting their transgender son-in-law, a New York Times technology executive.

Shouyong Zhang and Shili Chen, both 77, allegedly killed 40-year-old Jonathan McKinsey in the parking lot of Dublin Sports Grounds in Dublin, California, on Saturday, according to local police.

McKinsey, who had served as the New York Times’ head of engineering for games player experience since 2023, was struck by several bullets and pronounced dead at the scene.

Witnesses told investigators that two masked attackers walked up to McKinsey in the lot and alternated firing at him. The pair then reportedly left the area in a calm manner.

The suspects were later shown being detained along the roadside after shocked witnesses reportedly alerted a nearby police sergeant and helped flag them down.

Zhang and Chen were subsequently booked into Alameda County’s Santa Rita Jail. They are being held without bail on allegations including murder, felony conspiracy, child endangerment and the reckless discharge of a firearm.

Investigators have not publicly established a motive for the shooting.

Authorities are reportedly examining claims involving alleged child and domestic abuse, along with McKinsey’s accusations that his in-laws made disparaging comments about his gender transition and once attempted to remove medical tubes during a procedure.

In court records obtained by Mercury News, McKinsey’s wife, Candice Jang, alleged that he struck her six-year-old son in the face during an argument about LEGOs. She said the child was left with a “very large bruise” in the shape of a handprint.

Jang also alleged that McKinsey had assaulted her in 2018 by gripping her wrist so forcefully that it left bruising.

According to deputies, officers responding to that incident found a two-year-old child alone in an upstairs bedroom while McKinsey had reportedly gone shopping.

McKinsey was charged with misdemeanor counts of cruelty to a child by endangering health and corporal injury to a child. He was released after posting $50,000 bail.

Mercury News reported that, at the time of his death, he was seeking entry into a mental health diversion program that could have led to the charges being dismissed after successful completion.

In later court filings, an attorney for Jang alleged that McKinsey was “simply prone to domestic violence and child abuse.” The lawyer added that the incidents described in Jang’s earlier complaint were “far from the first time” he had allegedly used physical violence against her or members of her family.

“Due to his violent and negligent history, our children are simply not safe when left unsupervised and in his care,” Jang wrote in a filing submitted last month.

McKinsey disputed those allegations in his own court documents, claiming instead that Jang had subjected him to abuse for more than 15 years.

In 2013, he claimed she beat him with a frying pan, according to the court documents.

He also claimed Jang verbally denigrated the children, and alleged that Chen, Jang’s mother, was verbally abusive to one of the couple’s young children, raising objections over the child’s clothing.

McKinsey, who was transgender, claimed Chen directed anti-LGBTQ+ slurs at him and the child, referring first to the child and then to McKinsey as a ‘disgusting queer’ and a ‘pervert.’ 

The New York Times tech executive further accused Jang of being abusive during medical procedures related to his transition, claiming that at one point she tried to pull medical tubes from his body shortly after he underwent a procedure, according to the Mercury News.

He also alleged that Jang’s father, who was not named in the filing, punched him in the chest while he was recovering from a double mastectomy. 

McKinsey ultimately filed for divorce from Jang in December, and the couple continued to litigate child custody, with a court hearing scheduled for Friday, Mercury News reports.

But it remains unclear whether Zhang and Chen may have been motivated to kill McKinsey over the allegations of abuse or disagreements over his gender identity.

‘Part of our investigation is looking for motives from all angles as well as looking at the histories and relationships of everyone involved and associated with the victim and suspects,’ Captain Michael Campos, of Dublin Police Services, told the Post. 

Witness Assad Razawi had told ABC7 he heard several gunshots ringing out from across the parking lot, before he ‘saw the guy drop to the floor.’

‘(His) head and chest were bloody,’ the witness said of McKinsey.

Another witness added that they then saw a ‘man and a woman walking together and casually walk away from the shooting’ moments later. 

A sergeant who was driving nearby saw McKinsey lying on the ground, police said, and officers were scrambled to the parking lot. 

Razawi told the San Francisco Chronicle that after witnesses saw two shooters calmly walking away, they were found in a black sedan at a nearby intersection. 

A spokesman for the New York Times confirmed to the New York Post that McKinsey had been employed as head of games at the company since 2023. 

He was previously an engineering manager at software company Splunk and he studied at UC Berkeley. 

Zhang and Chen’s arraignment has been scheduled for Wednesday. 

The Daily Mail has reached out to Dublin Police for comment.