The Reserve Bank of Australia’s Governing Council unanimously voted to raise interest rates by 25 basis points to 4.60% at its meeting this morning, Tuesday, September 29, as expected. This marks the fourth rate hike this year and brings the rate to its highest level since 2011.

The bank’s policy statement explained that inflation remains elevated and some of the upside risks identified in August are now materializing, with the escalating conflict in the Middle East and global energy prices significantly higher than anticipated in August.

While production slowed, it was slightly stronger than expected in the second quarter, and there are signs that consumer spending growth is gradually slowing, as anticipated. However, uncertainty remains regarding the outlook for the domestic economy.

The Council is focused on ensuring that high inflation does not persist and will continue to take whatever measures it deems necessary to bring inflation back towards the target level. The Council will pay close attention to changing data and assessments of outlooks and risks to guide its decisions and will focus on its task of achieving price stability and full employment and will do whatever it deems necessary to achieve this.