RBA Hikes Cash Rate Amid Oil Price Pressures and Domestic Capacity Constraints

The Reserve Bank of Australia (RBA) has raised its cash rate by 0.25 percentage points to 4.60 per cent, its fourth increase this year.

The decision is aimed at curbing inflation, which remains too high according to the RBA.

Oil prices are a major contributor to the current inflation problem, with disruptions to global supply pushing energy costs higher and feeding into wider price increases.

The RBA notes that businesses are reporting cost pressures, leading some to raise prices or prepare for future hikes.