🇦🇺The Reserve Bank of Australia raised its cash-rate target 25 basis points to 4.60%.

The Reserve Bank of Australia (RBA) increased its cash-rate target from 4.35% to 4.60%, matching the forecast carried in the supplied financialjuice release. Governor Bullock said the board considered both a pause and a 25-basis-point increase.

The RBA said recent inflation readings exceeded expectations at the previous meeting and that further tightening was needed to return inflation to target. Bullock attributed inflation to domestic capacity pressures and said the Middle East conflict had worsened a problem that already existed.

Labor-market conditions had generally eased as expected, according to the RBA, although Bullock still described the market as somewhat tight. She said tightening was intended to be measured and that the bank needed quarterly core inflation readings around 0.6%; these are policy assessments, not evidence of a specific change in AI-infrastructure financing costs.