RBA Hikes Interest Rate to 15-Year High Amid War-Driven Inflation

Australia's central bank has raised its key interest rate to a 15-year high of 4.6 percent, citing inflation fueled by the prolonged war in the Middle East and the rise of artificial intelligence.

The Reserve Bank of Australia (RBA) increased the cash rate by 25 basis points on Tuesday, marking the fourth rate hike this year.

According to Economy Minister Jim Chalmers, the re-escalation of the war in the Middle East is a major contributor to inflation, with Australians paying 'a very hefty price' for it.

The RBA also pointed out that higher fuel prices due to disrupted global oil supply are being passed on to consumers, leading to increased costs for goods and services.