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

The Reserve Bank of Australia (RBA) increased its cash rate to 4.60%, the highest in 15 years, as it attempts to control inflation. The move was the fourth hike this year and was widely expected. Markets are now pricing in a 43% probability for another rate rise in November.

The RBA cited strong inflation data and global energy prices as reasons for the increase. It also mentioned that the conflict in the Middle East has broadened, leading to higher energy costs.