RBA raises interest rate to 11-year high

Governor Philip Lowe signals further rate hikes may be needed

Reserve Bank of Australia
The Reserve Bank of Australia
Photo: Alex Towle

The Reserve Bank of Australia unexpectedly raised its benchmark interest rate by another 25 basis points today (June 6) and warned that further monetary tightening may be needed to bring inflation back to target.

The move brought the cash rate from 3.85% to 4.1%, the highest level since April 2012.

The RBA briefly paused its tightening cycle in April but raised the cash rate again by 25bp last month. The central bank has raised interest rates by 400bp in total since May last year.


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