The Reserve Bank of Australia (RBA) has officially raised the national cash rate to 4.6%, an increase from the previous 4.35%. This adjustment represents the fourth rate hike of the year and brings interest rates to their highest point in 15 years, a level not seen since 2011.

The decision comes as the RBA attempts to manage inflation, which remains above the bank's target range of 2% to 3%. Upcoming economic data is expected to show underlying inflation at an annual pace of 3.6% for August. RBA Governor Michele Bullock has indicated that the decision is driven by concerns that both businesses and workers may continue to raise prices and wage demands in anticipation of ongoing high inflation.

While the SMH report focuses primarily on the milestone of the 15-year high, The Guardian provides additional context regarding the impact on mortgage holders. The Guardian notes that the increase was widely expected by market observers, though it will inevitably lead to higher monthly repayment costs for millions of Australians with home loans.