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With no easy options, RBA raises interest rates for the third time to quell inflation

By Stella Huangfu, Associate Professor, School of Economics, University of Sydney

The Reserve Bank of Australia (RBA) has lifted the official cash rate by another 25 basis points, the third hike this year as it struggles to keep inflation under control.

The increase takes the cash rate to 4.35%, and fully reverses the three rate cuts delivered in 2025. The hike had been widely expected by economists after a sharp rise in inflation figures last week. RBA Governor…

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