Australia raises interest rates to 15-year high and warns further hikes possible

Australia has lifted its benchmark interest rate by 25 basis points, pushing borrowing costs to a 15-year high as authorities continue their battle against persistent inflation.

The move was widely anticipated, with economists having forecast precisely such an increase ahead of the decision. Despite meeting expectations, the announcement carried a pointed message for households and businesses: further tightening has not been ruled out.

Policymakers made clear that the path ahead would depend on incoming economic data, signalling a cautious but resolute stance. The warning that additional hikes remain on the table is likely to weigh on consumer confidence and mortgage holders already stretched by a prolonged period of rising repayments.