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

The Reserve Bank of Australia (RBA) has raised its cash rate to its highest level in 15 years, increasing it by 25 basis points to 4.6%. This move is part of the RBA's efforts to combat persistent inflationary pressures.

Inflation currently stands at 3.5%, above the RBA's target range of 2-3%. Core inflation, which strips out volatile energy and food prices, was running at 3.6%.

The RBA warned that more rate hikes may be on the way if inflation continues to persist. The bank said that recent data had been stronger than expected and that financial conditions need to remain restrictive to ease price pressures over time.