RBA Hikes Interest Rates to Highest Level in Over a Decade

The Reserve Bank of Australia (RBA) has raised interest rates to their highest level since 2011, increasing the cash rate by 25 basis points to 4.6 per cent.

This decision was made in a unanimous vote by the RBA board, citing hotter-than-expected inflation and rising oil prices as key factors.

The RBA's governor, Michele Bullock, noted that 'inflation remains elevated and some of the upside risks flagged in August are materialising.'

As a result of this rate hike, the average owner-occupier variable rate will rise to 6.49 per cent, according to financial comparison site Canstar.