RBA Hikes Cash Rate to Record 15-Year High of 4.6%

The Reserve Bank of Australia (RBA) has raised the cash rate for the fourth time this year, pushing it to a 15-year high of 4.6%. This decision is expected to squeeze borrowing capacities and tighten financial conditions further.

RBA Governor Michele Bullock warned that inflation remains too high and the board judged that a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period.

The RBA has flagged the potential for further rate rises ahead, citing broadening conflict in the Middle East and AI-related demand as contributing factors to inflation. The cash rate is now at its highest level since 2008.