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

The Reserve Bank of Australia (RBA) has increased interest rates by 0.25 percentage points to 4.60 percent, its highest level in 15 years.

This decision comes after senior RBA officials warned that they are losing patience with the time it is taking to drag inflation back down into their 2-3 percent target range.

The current inflation rate stands at 3.5 percent, while underlying (or 'core') inflation is at 3.6 percent. The RBA aims for an average of 2.5 percent over the medium term.

RBA Board members stated that they want to prevent high inflation from becoming embedded in Australia's economy and that interest rates needed to rise to reduce capacity pressures and bring inflation back to target.