RBA Hikes Cash Rate to 4.6% Amid AI-Driven Inflation Fears

The Reserve Bank of Australia (RBA) has raised its key interest rate to 4.6%, its highest level since 2011, in an effort to combat inflation.

RBA governor Michele Bullock stated that the global AI boom is driving significant price rises and contributing to demand in the Australian economy.

The RBA's decision was made with a unanimous vote from its rate-setting board, which warned of fears about inflation beginning to be realized.