RBA Hikes Cash Rate to 15-Year High Amid Inflation Concerns

The Reserve Bank of Australia (RBA) raised its cash rate to a 15-year high on Tuesday, increasing it by 25 basis points to 4.6 percent.

This is the fourth hike this year, with the RBA aiming to bring inflation back within its target band of 2-3 percent.

RBA Governor Michele Bullock said that while some inflation risks have materialized, the bank is prepared to hike further if needed to achieve its goal.

The move was widely expected, but Bullock noted that the board considered keeping interest rates steady this time around.