Reserve Bank of Australia raises official cash rate to 4.35 percent

The RBA increased its official cash rate by 25 basis points to 4.35% in its third consecutive rate hike, citing inflationary pressures from higher fuel prices and geopolitical tensions. The central bank revised down its growth forecasts, projecting 2026 growth to fall to 1.3% due to expected economic impact from the Iranian conflict, while inflation is forecast to peak at 4.8%. The decision affects over three million Australian mortgage holders amid broader cost-of-living pressures.