RBA Raises Interest Rates to 15-Year High Amid Inflation Concerns

The Reserve Bank of Australia (RBA) has raised interest rates to a 15-year high of 4.6%, citing concerns about inflation.

Australia's inflation rate is currently at 3.5%, down from the previous 3.8%, but remains above the RBA's target range of two to three per cent.

The RBA has warned that higher interest rates may lead to higher unemployment, with the Australian Council of Trade Unions (ACTU) accusing the bank of 'walking away' from its commitment to full employment.

Business leaders have also expressed concerns about the impact of rising interest rates on hiring and investment. James Keene, managing director for Asia-Pacific at Employment Hero, said that higher borrowing costs could make businesses more cautious about hiring and investment.