RBA Boosts Interest Rate to 15-Year High Amid Inflation Fears

The Reserve Bank of Australia has increased its benchmark interest rate to 4.6%, marking a 15-year high, as it seeks to combat persistent inflation and higher energy costs.

This is the fourth rate hike this year, totaling 100 basis points, with policymakers aiming to bring inflation back within the 2% to 3% target range by 2026.

Australia's inflation rate has been above target for several months, reaching 4.6% in March and 3.5% in July, with the central bank citing domestic price pressures and higher energy costs linked to the Iran conflict as contributing factors.