RBA Slams Brakes on Economy with Fourth Rate Hike This Year

The Reserve Bank of Australia (RBA) has raised the cash rate target by another 25 basis points, bringing it to a 15-year high of 4.60 per cent.

This is the fourth time rates have jumped this year alone, and it's bad news for borrowers with variable home loans who will see their monthly payments increase.

The RBA blamed inflation, which is currently running hotter than expected at 3.5 per cent, for the rate hike.

The central bank noted that higher global energy prices and domestic capacity pressures are keeping prices buoyant, and they need to act quickly to prevent these high prices from becoming a permanent fixture in the economy.