Australia's Reserve Bank (the country's central bank) has raised its official cash rate by 25 basis points to 4.6%, the highest level since 2011, marking the fourth increase this year. The unanimous decision targets persistently high inflation, which is running above the RBA's 2–3% target band, with governor Michele Bullock citing global factors including a broadening Middle East conflict and surging AI-related investment demand as key drivers of price pressures. The bank warned it stands ready to raise rates again if needed, leaving millions of Australian mortgage holders facing an estimated AU$1,400 in additional annual repayment costs.