The effect of the Reserve Bank of Australia's rate hike is beginning to show, and the real estate market has started to cool down.

Golden Ten Data reported on June 4 that Reserve Bank of Australia (RBA) Governor Bullock stated that the RBA has observed signs indicating its rate hikes are beginning to take effect in the economy and reiterated that the Monetary Policy Committee will take necessary measures to achieve its objectives. The RBA has raised interest rates at all three meetings this year, bringing the benchmark rate back up to 4.35% in an effort to curb resurging inflation. Bullock expressed concern about the risk of second-round inflation effects arising from energy shocks triggered by Middle East conflicts. Bullock noted that one of the channels through which rate adjustments tend to have a swift impact is the property market, where conditions have already eased somewhat, partly reflecting tighter monetary policy. Money markets expect the RBA to hold rates steady at the June meeting, with about a 50% probability of another rate hike in August, while the likelihood of a hike in December has been fully priced in.