RBA Hikes Rates Again: Inflation Fears Drive Higher Interest

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

This is the fourth time rates have increased this year, and it will likely result in higher monthly mortgage repayments for borrowers with variable home loans.

The RBA cited inflation as the main reason for the hike, citing that recent data showed prices are still running hotter than expected at 3.5 per cent.

The central bank noted that higher global energy prices and elevated costs of everyday services are contributing to the stubborn inflation, and it has decided to act quickly to prevent these high prices from becoming a permanent fixture in the economy.