The Reserve Bank of Australia (RBA) lifted its official cash rate to 4.85%, up 0.25 percentage points from 4.60%. It is the bank’s fifth rate increase this year and the highest level reached since 2008.
The decision follows a sharp rise in inflation, which climbed to 4.3% in the year to September. The RBA said the hike is needed to regain control of the surging price pressures that have been amplified by a global oil shock triggered by the war in the Middle East.
Mortgage holders are likely to feel the impact of the higher rate, as borrowing costs for new loans and refinancing are expected to rise. The move is part of a broader tightening cycle aimed at cooling the economy.
Senior RBA officials have issued tough commentary over recent days and weeks, underscoring the central bank’s commitment to restraining inflation even at the expense of higher borrowing costs.
<small>Source: The Guardian — read the original story there.</small>