RBA Hikes Interest Rates to 15-Year High Amid Inflation Concerns

Australia's central bank has raised interest rates to combat rising energy costs and demand that threaten to intensify inflationary pressures.

The Reserve Bank of Australia (RBA) lifted the cash rate to 4.6% from 4.35%, taking rates to a 15-year high, in its unanimous decision on Tuesday.

The move aims to ensure that high inflation does not become embedded, with the RBA citing 'upside risks to inflation' and warning of further hikes if needed.

Traders have lifted bets on a follow-up rate hike, with swaps pricing a 56% chance of a move in November.