RBA Slams Brakes on Economy with Record-High Interest Rate Hike

The Reserve Bank of Australia (RBA) has increased 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 likely see their monthly payments go up in the coming weeks.

The RBA cited inflation as the main reason for the rate hike, with prices currently hovering at 3.5 per cent, above its target range of 2-3 per cent.

The central bank noted that higher global energy prices and domestic capacity pressures are contributing to the high inflation rate, and it may need to act again in future if prices don't start dropping faster.