RBA Raises Cash Rate to 4.6% Amid Inflation Risks

Australia's central bank, the RBA, raised its cash rate to 4.6% on Tuesday, marking the fourth increase this year and the highest point in roughly 15 years.

The move was expected by traders, but Governor Michele Bullock sounded cautiously optimistic that the hikes delivered so far can control inflation.

The bank cited signs of upside inflation risks due to sturdy domestic demand and more expensive energy, noting that higher fuel costs are feeding through into broader prices.

With this increase, cumulative tightening this year totals 1 percentage point, and markets still lean toward one more increase this cycle.