RBA Hikes Cash Rate to 15-Year High Amid Inflation Concerns
Australia's central bank has raised its cash rate to a 15-year high of 4.60% on September 29, in line with market expectations. The Reserve Bank of Australia (RBA) board voted unanimously to lift rates by 25 basis points, bringing the tightening this year to a full percentage point.
The RBA cited inflation as the reason for the hike, stating that it was too high and productivity weak at home. Core inflation is currently running at 3.6%, above the RBA's target range of 2% to 3%. The board noted that some upside risks to inflation were materializing with energy costs high.
The decision marks the fourth hike this year, with investors wagering heavily on an increase given the current economic conditions. Markets are now priced for at least one more hike ahead.