RBA Hikes Cash Rate Again, Signals Further Tightening Ahead

The Reserve Bank of Australia (RBA) has raised its cash rate by 25 basis points to 4.60%, in line with market expectations.

This decision was unanimous, and the accompanying statement reinforced the RBA's commitment to returning inflation sustainably to target.

At a press conference, Governor Michele Bullock emphasized that labour market conditions remain too tight, while demand pressures continue to exceed supply capacity.

The Bank also noted that renewed escalation in Middle East tensions adds to inflation uncertainty.