RBA Slams Brakes on Economy with Highest Interest Rate Hike Since 2011

The Reserve Bank of Australia (RBA) has increased interest rates to their highest level since 2011, further straining already cash-strapped borrowers.

In a unanimous decision, the central bank's board lifted the cash rate by 25 basis points to 4.6 per cent in its two-day meeting on Tuesday.

This is the fourth interest rate rise of 2026 and follows expectations of another hike based on hotter-than-expected inflation, rising oil prices, and hawkish commentary from the RBA's top brass.

The cash rate has climbed to 4.6 per cent as the central bank noted that recent developments warrant further tightening in financial conditions to support a return of inflation to target within a reasonable period.