RBA Slams Brakes on Borrowing as Cash Rate Hits 15-Year High

The Reserve Bank of Australia (RBA) has raised its cash rate target by 25 basis points to 4.6%, marking the fourth rate hike this year and the highest level in 15 years.

This decision comes as underlying inflation remains at 3.6%, above the central bank's 2-3% target range, with the RBA warning that inflationary risks remain elevated.

The impact of the rate hike will be felt by mortgage holders, particularly those carrying large home loans, as higher borrowing costs put additional pressure on household budgets.

Savers with high-interest deposit accounts may benefit from higher returns if banks pass on the RBA's increase by raising deposit rates.