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

Australia's central bank, the Reserve Bank of Australia (RBA), raised its cash rate to a 15-year high of 4.60% on September 29. This is the fourth hike this year and was widely expected by markets.

The RBA stated that inflation remains too high and that it is prepared to increase rates further if needed. The bank noted that some upside risks to inflation are materializing, including disruptions to global oil supply and higher growth and inflation in Australia than expected.

Brent crude has risen nearly 20% since the RBA's last meeting in August, pushing fuel costs higher and contributing to a potential broadening of price pressures. The RBA also mentioned a data centre investment boom worth an estimated A$175 billion, which is adding to domestic demand.