RBA raises interest rates to 4.35pc in an almost unanimous vote

Treasurer Jim Chalmers says households are paying the price for the Middle East war after the Reserve Bank of Australia raised the official interest rate for the third time this year, prioritising curbing inflation despite the growing risks of an economic downturn.

In a decisive 8-1 vote by the RBA’s nine-member monetary policy board on Tuesday, the central bank lifted the cash rate by 0.25 of a percentage point from 4.1 per cent to 4.35 per cent. The move reverses the three rate cuts by the RBA last year.

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