RBA Slams Brakes on Economy with Record-High Interest Rate

The Reserve Bank of Australia (RBA) has raised interest rates for the fourth time this year, taking the cash rate to a 15-year high of 4.6 per cent.

This decision was made by RBA Governor Michele Bullock, who warned that it could take a recession to control inflation.

The latest rate hike will add more than $100 to monthly repayments on an average new mortgage, and another follow-up hike is expected before Christmas, which would see variable mortgage rates climb above 7 per cent for the first time since the global financial crisis in late 2008.

Bullock stated that the RBA's dual mandates of full employment and inflation control have not been met, with inflation at 3.5 per cent and unemployment at a five-year high of 4.6 per cent.