RBA lifts cash rate to 4.85% in fifth hike this year

Inevitable tightening from the Reserve Bank has pushed Australia’s cash rate to a high not seen since the Global Financial Crisis.A new cash rate of 4.85% was confirmed by the bank on Tuesday, with its nine monetary policy board members pushing through a fifth rate hike for the year.Economists and markets had widely anticipated the tightening following recent appearances by Reserve Bank executives suggesting inflation is set to get worse before it gets better.Reserve Bank governor Michele Bullock will address media at 3:30pm following the decision to increase the cash rate to 4.85%. Picture: David GrayAFP via Getty ImagesLatest data from the Australian Bureau of Statistics shows headline inflation rose 4.3% in the 12 months to September, the highest level since March.Housing is continuing to weigh most heavily on headline inflation, rising by 5.2% in September. This includes new dwelling purchases, rents and costs like the price of utilities and home maintenance.Underlying inflation was 3.6% in the 12 months to September, marking the sixth month without any improvement. The measure of this strips out the most volatile prices each month, such as fuel, to provide a more accurate pict...