RBA Rate Hike Hits 15-Year Peak, Aussie Dollar Stays Flat

The Reserve Bank of Australia (RBA) raised its policy rate to 4.60%, marking a 15-year peak, but the Australian dollar barely budged.

Markets had already priced in the hike, so the currency's reaction was muted.

Attention has shifted to Wednesday's August inflation report, with economists expecting headline inflation to pick up to 4.1% from 3.5%, driven by fuel prices.

The RBA signaled it could tighten its policy again if inflation doesn't cool down quickly enough.