Australia's Reserve Bank (RBA) has raised its benchmark cash rate by 25 basis points to 4.35%, dealing a fresh blow to the country's more than three million mortgage-holding households. The decision, backed by eight of nine board members, was driven by persistent inflationary pressure worsened by an oil supply shock linked to conflict in the Middle East, with consumer price growth now forecast to peak at 4.8% — higher than pre-conflict estimates. The RBA warned that even if the conflict ends soon, inflation is likely to remain above its target for an extended period, as businesses facing higher costs move to raise prices, while annual economic growth is projected to slow to just 1.3% this year.