The Reserve Bank of Australia has lifted the cash rate to an 18-year high and warned it will do what is necessary to get inflation back to target, adding to pressure on Treasurer Jim Chalmers to find budget savings as mortgage repayments approach record levels.
Six members of the RBA’s nine-person monetary policy board voted to lift the cash rate by 0.25 percentage points to 4.85 per cent – its fifth hike this year – amid concerns inflation was too broadly based. Three members dissented, voting to keep rates on hold.
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