RBA Hikes Cash Rate by 25 Basis Points, Markets Eye Bullock's Press Conference

The Reserve Bank of Australia (RBA) has increased the overnight cash rate by 25 basis points to 4.6%, as widely expected by markets and economists alike.

The decision was unanimous, with the RBA warning that it remains prepared to increase the cash rate further if needed to bring inflation sustainably back to target.

Markets had already priced in a considerably higher rate profile ahead of today's decision, with the cash rate expected to top out above 5%, according to the accompanying graphic from Bloomberg.

The RBA statement carried a more hawkish assessment of both growth and inflation compared to August, although some of the inflation language had already been flagged by RBA Governor Michele Bullock last week.