RBA Hikes Cash Rate to 4.60%, Eyes Further Moves Ahead

The Reserve Bank of Australia (RBA) has raised its cash rate by 25 basis points to 4.60%, the fourth hike this year, in an effort to curb stubborn inflation.

The move was expected, and markets had been fully priced for it, limiting the immediate reaction in the Australian dollar, which remained flat at $0.7014.

Katherine Palmer, head of fixed income strategy at BlackRock Australia, noted that the upcoming consumer price data release will be an important gauge of domestic price pressures and a key input into the policy outlook.

The RBA's decision to hike rates again has implications for the broader economy, with markets implying a 44% chance of another move in November and a 60% chance in December.