RBA Hikes Cash Rate to 4.6% Amid Ongoing Economic Pressures

The Reserve Bank of Australia (RBA) has raised its cash rate for the fourth time this year, increasing it by 0.25 percentage points to 4.6 per cent.

This marks the highest level in 15 years and is attributed to ongoing economic pressures, including inflation at 3.6 per cent, which is above the target range of 2-3 per cent.

The RBA stated that further disruptions to global oil supply have contributed to higher prices, and growth and inflation in Australia have been higher than expected.

Major banks agree that rates will remain elevated for much of 2027 before gradually easing.