Australia's Central Bank Slams Brakes on Economy with Record Interest Rate Hike

Australia's central bank has taken a significant step to combat inflation by raising its key interest rate to 4.60%, marking a 15-year high.

The Reserve Bank of Australia (RBA) increased the cash rate by 25 basis points, bringing the total increase in interest rates during 2026 to one percentage point.

Policymakers are closely monitoring economic activity as they assess the impact of previous rate increases on households and businesses, which will see borrowing costs rise.