RBA Raises Cash Rate to 4.60 per cent Amid Rising Inflation Risks

The Reserve Bank of Australia (RBA) has raised its cash rate target to 4.60 per cent, citing persistent inflation pressures and increasing economic risks.

The decision was made unanimously at the RBA Board's meeting today, with several key factors contributing to the increase in interest rates.

The central bank noted that higher global energy prices linked to the conflict in the Middle East are putting additional pressure on inflation in Australia and overseas. Additionally, domestic cost pressures remain significant, with businesses reporting higher costs and either increasing prices or considering further price increases.

The RBA also mentioned that recent Australian inflation data was stronger than expected at its previous meeting, which contributed to the decision to raise interest rates.