Reserve Bank of Australia raised the cash rate 25bp to 4.60% from 4.35% in its
fourth hike this year. The MPC said an unresolved Middle East conflict is
increasing inflation risks and that those risks are materialising; it did not
rule out another rate rise in November — which would lift rates to their highest
level since 2008. Markets will watch the impact of tighter policy on the labour
market and house prices, which are likely to be the first to feel pressure.
