RBA Hikes Cash Rate to 4.60% in Hawkish Move

The Reserve Bank of Australia (RBA) delivered a hawkish 25bp hike in its cash rate, raising it to 4.60%. The move was in line with expectations and signals that the bank is prioritizing inflation control.

According to the RBA, demand continues to outstrip supply, leading to firm inflation readings. While August inflation data has not yet been released, the RBA appears focused on the trajectory of subsequent readings.

The bank's message was clear: policy will remain restrictive for longer, and additional tightening cannot be ruled out if necessary.