RBA Slams Brakes on Economy with Highest Rate Hike Since 2008

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

RBA governor Michele Bullock said the decision was necessary to rein in high inflation that 'hurts all Australians', which is currently at 3.5 per cent above the target range of 2-3 per cent.

The last time rates were above 4.50 per cent was November 2011, and Bullock acknowledged that this decision would be tough for mortgage holders.

'High inflation hurts all Australians, especially the most vulnerable,' Bullock said. 'Every household has seen how the price of everything has gone up in recent years.'