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

The Reserve Bank of Australia (RBA) has raised its cash rate target to 4.60%, marking the highest level since 2011. The decision was unanimous, with all nine board members voting in favour of lifting rates.

RBA governor Michele Bullock said that higher than expected economic growth and inflation meant that interest rates needed to rise to bring inflation back to target.

The RBA Board stated that its strategy is to tackle inflation while preserving labour market gains, but noted that Australia's lacklustre productivity growth is making it challenging.