RBA interest rates: Reserve Bank hikes cash rate for fifth time this year in blow to mortgage holders

Reserve Bank of Australia increases official cash rate to 4.85%, bringing it to highest level since 2008

The Reserve Bank has hiked rates for the fifth time this year, from 4.6% to 4.85%, in an attempt to regain control of surging inflation amid an ongoing global oil shock triggered by the war in the Middle East.

The RBA’s decision to hit mortgage holders again is no surprise after inflation jumped to 4.3% in the year to September and comes following tough talk from senior central bank officials over recent days and weeks.

The cash rate has now reached its highest level since 2008.