RBA Slams Brakes on Inflation with Highest Rate Hike Since 2011

The Reserve Bank of Australia (RBA) has raised the country's official cash rate to its highest point in 15 years, reaching 4.6%.

This is the fourth 25-basis-point rate rise this year by the central bank, as it attempts to tame inflation, which remains elevated according to the RBA.

The RBA cited global pressures, including the conflict in the Middle East and rising energy prices, as contributing factors to Australia's inflation problem.

RBA Governor Michele Bullock acknowledged that low productivity is a key issue holding back economic growth, but stated that raising interest rates would not significantly increase the risk of recession.