RBA Hikes Interest Rate to 4.6% Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) has raised the cash rate target by 25 basis points to 4.6%, its highest level since 2011, as part of its efforts to curb inflation.

This is the fourth time this year that the RBA has increased the interest rate, adding around $120 a month to the average home loan and bringing this year's increases to about $480.

According to RBA Governor Michele Bullock, the central bank will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed.

Bullock cited global uncertainty, including the Middle East war and AI-related demands, as contributing factors to the RBA's decision. She emphasized that high inflation hurts all Australians, especially the most vulnerable.