Reserve Bank of Australia raises cash rate to 4.85%, fifth hike this year

Source Summary

The Reserve Bank of Australia raised its cash rate to 4.85% from 4.6%, marking the fifth rate increase in 2024 and reaching an 18-year high. The decision aims to combat inflation, which rose to 4.3% in the year to September, amid global oil price pressures linked to Middle East tensions.

Why it matters

The RBA's continued rate increases directly raise borrowing costs for Australian mortgage holders and businesses, affecting household finances and economic growth.