RBA Slams Brakes on Inflation with Highest Interest Rate Hike in 15 Years

The Reserve Bank of Australia (RBA) has raised its benchmark interest rate to 4.60%, marking the highest level in 15 years. This increase was announced on September 29, following a monetary policy meeting where Governor Michele Bullock emphasized the need to combat rising inflation.

Australia's consumer price index is expected to show a 4.1% rise from last year, exceeding the central bank's target range of 2-3%. Core inflation remains at an elevated 3.6%, with higher fuel prices contributing to increased costs across various sectors.

The RBA stressed that further rate hikes may be necessary if high inflation persists. This warning comes as Australia's housing market is already experiencing a downturn, and the unemployment rate has climbed to 4.6% in recent months.