RBA Hikes Interest Rates Again, Aussie Dollar Surges

The Australian Dollar (AUD) gained strength against its major currency peers after the Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 4.6%.

This is the fourth quarter-to-a-percent interest rate hike by the RBA this year, with officials signaling further tightening due to elevated supply shocks and demand driven by the Artificial Intelligence boom.

RBA Governor Michele Bullock warned of 'inflation risks materialising from Middle East, excess demand at home.'

Analysts at ING expect further rate hikes, citing that inflation concerns remain elevated and core CPI measures have all remained hot.