RBA Hikes Benchmark Rate to 4.6%, Fourth Increase This Year

The Reserve Bank of Australia (RBA) has increased its benchmark interest rate to 4.6%, marking the fourth hike this year and taking borrowing costs to their highest level in 15 years.

The move is aimed at curbing persistent inflation, which remains above the RBA's target band of 2-3%. Consumer prices rose 3.5% year-on-year to July, with housing costs increasing 5% and food and beverage prices up 3.2%, according to the Australian Bureau of Statistics.

The RBA links higher fuel prices to broader costs for goods and services and signals that it is prepared to raise rates again if needed to prevent price pressures from becoming embedded.