Australia's Interest Rates Hit 15-Year High Amid Borrower Concerns

The Reserve Bank of Australia (RBA) has increased interest rates to their highest level in 15 years, sparking concerns for cash-strapped borrowers.

In a unanimous decision, the RBA's nine-member board lifted the cash rate target by 25 basis points to 4.6% on Tuesday.

RBA Governor Michele Bullock said inflation was too high and that the board needed to lift interest rates to get it down.

While analysts had predicted this move, they are divided on whether another hike is coming in November or early next year.

Commonwealth Bank senior economist Ashwin Clarke expects rates to remain on hold until mid-2027, but Paul Bloxham of HSBC considers a November hike as his base case.