Australia's RBA Hikes Cash Rate to Highest Level in 15 Years

The Reserve Bank of Australia (RBA) has raised its cash rate target by 25 basis points to 4.6% from 4.35%, marking the highest level in 15 years.

This is the RBA's fourth rate hike this year, bringing the total increase in borrowing costs in 2026 to one percentage point.

The decision comes as underlying inflation remains at 3.6%, above the central bank's 2-3% target range.

The RBA has warned that inflationary risks remain elevated and is taking steps to contain persistent inflationary pressures.