RBA Hikes Rates Again Amid Stubborn Inflation

The Reserve Bank of Australia (RBA) has raised the cash rate target by another 25 basis points, bringing it to a 15-year high of 4.60 per cent.

This is the fourth time rates have jumped this year alone, and it's a frustrating update for anyone with a variable home loan.

The RBA board decided to tighten financial conditions once again in an effort to prevent inflation from becoming a permanent fixture in the economy.

Inflation is currently hovering at 3.5 per cent, which is higher than expected, and the central bank has a strict goal to keep it between 2 and 3 per cent.

The board noted that global energy prices and domestic capacity pressures are contributing to high inflation, and they will continue to monitor economic data closely over the coming months.