RBA Hikes Rates to 15-Year High Amid Global Energy Crisis

The Reserve Bank of Australia (RBA) has raised its cash rate by 25 basis points to 4.6%, pushing borrowing costs to their highest level since 2011.

The decision, made unanimously by the nine-member board, is the fourth increase this year and comes as global energy prices surge due to the Middle East conflict.

Fuel costs have been a major driver of inflation in Australia, with headline inflation hitting 4.6% in March after fuel prices jumped 32.8% in one month. The trimmed mean, which strips out extreme price changes, has now held at 3.6% since May, above the RBA's target band.

The bank warned that further tightening may be necessary if inflation fails to cool, and traders have raised bets on a November hike, pricing a 56% chance of one.