RBA Slams Brakes on Borrowers with Another Interest Rate Hike

The Reserve Bank of Australia (RBA) has increased interest rates to their highest level since 2011, affecting borrowers across the country.

In a unanimous decision, the central bank's board lifted the cash rate by 25 basis points to 4.6 per cent on Tuesday, following expectations for a hike due to hotter-than-expected inflation and rising oil prices.

The RBA stated that the three interest rate increases since the start of this year have tightened financial conditions, and the economy appears to be slowing down.

However, inflation remains high, and the board believes another tightening in financial conditions is necessary to support a return to target in a reasonable period.