Australia's Reserve Bank Hikes Interest Rate to 15-Year High

Australia's central bank raised its benchmark interest rate to 4.6% on Tuesday, marking the highest level in 15 years.

The Reserve Bank of Australia increased the rate by 25 basis points, bringing the total rate increases this year to 100 basis points across four decisions.

The move aims to combat inflation, which remains above the bank's 2-3% target range, with consumer-price growth reaching 3.5% in July and 4.6% in March.

The bank has identified domestic price pressures and higher energy costs linked to the Iran war as drivers of persistent inflation.