Australia Lifts Cash Rate to 15-Year High of 4.60% in Fourth Hike of 2025

Australia's central bank raised its benchmark cash rate to a 15-year high of 4.60% on Tuesday, delivering its fourth increase of the year and signalling readiness to tighten further if inflation pressures persist.

The Reserve Bank of Australia's board voted unanimously to lift the rate by 25 basis points at the conclusion of its September policy meeting. The move brings the cumulative tightening this year to a full percentage point.

In its policy statement, the board said inflation remained too high and noted that some upside risks were beginning to materialise, pointing to elevated energy costs and weak productivity at home.

The decision was widely anticipated by investors. Core inflation is running at 3.6%, above the central bank's target range of 2% to 3%, and market pricing already reflects expectations of at least one more rate increase ahead.

The RBA reiterated that it is prepared to raise rates further should conditions warrant, underscoring its focus on returning inflation to target.