Still from a 9 News Australia YouTube live stream of RBA Governor Michele Bullock addressing the media following the Reserve Bank of Australia’s interest-rate decision.

Australia has done exactly what markets expected.

On Tuesday, September 29, the Reserve Bank of Australia lifted its cash rate by 25 basis points to 4.60%, its highest level since 2011.

The Reserve Bank of New Zealand's Official Cash Rate remains at 2.75%, leaving a 1.85 percentage-point gap between the two countries.

The RBA said inflation is still too high and made clear that it could increase rates further if necessary.

For Kiwi savers, the rate gap that looked uncomfortable on Monday just got wider.

The Kiwi also remains around A$0.807 against the Australian dollar.

Higher Australian rates do not automatically mean New Zealanders should move their savings across the Tasman. Exchange-rate movements, tax rules and differences between individual deposit products can quickly alter the calculation.

But the headline comparison is now stark.

Australia: 4.60%.
New Zealand: 2.75%.

And the RBA may not be finished yet.

This article is general market commentary and does not constitute personal financial advice.