RBA Hikes Rates to 4.60% Amid Rising Concerns

The Reserve Bank of Australia (RBA) increased interest rates for the fifth time this year, hiking the cash rate to 4.60%, its highest level in 15 years.

This move was widely expected, with Governor Michele Bullock stating that inflation remains too high and has been driven by domestic capacity pressures, as well as the impact of the Middle East on oil prices.

The RBA's unanimous decision to raise rates has kept alive the possibility of another hike in November, according to Franklin Templeton's Andrew Canobi, who estimates there is still a 50% chance of this occurring unless Consumer Price Index (CPI) starts to cool.

However, not everyone is pleased with the rate increase. The Australian Council of Trade Unions (ACTU) has expressed concern that it will add $110 a month to repayments on an average $731,000 mortgage and around $460 a month once this year's four hikes are combined.