RBA Rate Hike Fails to Boost Aussie as Oil Prices Fall

The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.60%, marking the highest level since 2011.

RBA Governor Bullock played down August's CPI, shifting focus to the lag in monetary policy and saying that inflationary pressures are likely to last longer than expected.

The RBA statement contained a subtle dovish shift in its forward guidance, removing reference to inflation returning to the midpoint of the target range in late 2027 and replacing it with the phrase 'within a reasonable period.'

Oil prices fell steadily throughout the session on hopes of some kind of deal from ongoing US-Iran talks.