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

The Reserve Bank of Australia (RBA) has raised interest rates to a 15-year high, with the cash rate target increasing by 25 basis points to 4.6%. This is the fourth rate hike since February and was widely expected by financial markets and economists.

RBA governor Michele Bullock said that inflation was too high and that the board needed to lift interest rates to get it down, but also noted that the underlying issue was excess demand in the domestic economy. The decision follows recent rate rises by central banks in other countries such as the US, Europe, and Japan.

Analysts are split on whether the RBA will hike again or if the cash rate will peak at 4.6%, but many believe that further rate hikes are possible to get inflation under control. A November rate hike is considered a possibility by some economists, which would see monthly repayments for new mortgages increase by around $550.