RBA interest rates: Reserve Bank raises cash rate to highest level in 15 years and warns of more hikes ‘if needed’

Michele Bullock says board knows decision will hit some people hard but hopefully in the next few years ‘this will all have been worth it’

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The Reserve Bank of Australia has lifted its key interest rate to 4.6%, its highest level since 2011, and warned of further hikes as the unending US war on Iran pushes prices “permanently higher”.

The widely expected fourth increase to the cash rate this year will add to repayment costs for millions of mortgage holders. Before Tuesday’s meeting, it sat at 4.35%.

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