Australia Raises Interest Rates to 15-Year High Amid Middle East Conflict

The Reserve Bank of Australia (RBA) has raised interest rates to their highest level in 15 years, lifting the cash rate target from 4.35 percent to 4.60 percent. This marks the fourth rate rise delivered by the RBA so far in 2026, after three previous increases of 0.25 percentage points in February, March, and May.

The move was unanimous among economists and Australia's major banks, who had predicted the decision to raise the cash rate target on Tuesday.

The RBA cited the ongoing conflict in the Middle East as a key factor in its decision, saying it has caused global energy prices to rise higher than expected. The central bank also pointed to AI-related demand driving rapid growth in global prices for technology-related goods.