RBA Slams Brakes on Economy with Fourth Rate Hike in 2023

The Reserve Bank of Australia (RBA) has raised its official cash rate to 4.6%, marking its highest level since November 2011.

This 25 basis point increase is the fourth time this year, following a two-meeting pause, and takes the cumulative rise in borrowing costs to 100 basis points since February.

The RBA's decision comes as inflation remains elevated, with trimmed mean inflation at 3.6% in July, unchanged from June, and above the target band of 2-3%. Headline CPI also eased to 3.5%, but still exceeds expectations.

Borrowers with a $600,000 mortgage will see their minimum repayments increase by approximately $91 per month if lenders pass on the full rate hike.