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

Australia's central bank raised its cash rate to a 15-year high of 4.60% on Tuesday, marking its fourth hike this year. The Reserve Bank of Australia (RBA) board voted unanimously to lift rates by 25 basis points in an effort to combat inflation.

The RBA said some of the upside risks to inflation are materialising with energy costs high and productivity weak at home. Core inflation was running at 3.6%, well above the RBA's target range of 2% to 3%. The bank is prepared to hike further if needed, according to a statement.

Investors had wagered heavily on an increase given the current state of inflation and market expectations.