RBA Hikes Cash Rate to 4.6%, Enters 'Dangerous Phase' Against Inflation

The Reserve Bank of Australia has raised its cash rate to 4.6% for the fourth time this year, as Governor Michele Bullock warns that the fight against inflation has entered a more dangerous phase.

The decision was influenced by external factors, particularly the escalating conflict in the Middle East, which has sent global fuel prices surging.

Bullock noted that while other central banks have successfully lowered inflation, many have done so at the severe cost of significantly higher unemployment.

The RBA is attempting to balance its goal of returning inflation to its 2-3% target range with the need to preserve employment levels, which remain historically low at 4.6%.