RBA Hikes Cash Rate to 4.60% in Bid to Tame Inflation

The Reserve Bank of Australia (RBA) has raised its cash rate to 4.60%, the highest level since 2011, in a move that was widely expected by markets.

This 25 basis point increase is the latest in a series of hikes aimed at bringing inflation under control, which the RBA considers too high.

In its statement, the central bank acknowledged that some of the upside risks to inflation are materializing, citing higher energy costs and domestic price pressures.

The RBA emphasized its commitment to ensuring that high inflation does not become embedded in the economy, and indicated that it may need to raise rates further if necessary.