RBA interest rates: Reserve Bank raises cash rate to highest level in 15 years and warns of more hikes ‘if needed’

Reserve Bank of Australia governor Michele Bullock said after the RBA decision to increase the cash rate that inflation had been too high for most of the past six years. Photograph: Dan Himbrechts/AAP

The Reserve Bank of Australia has lifted its key interest rate to 4.6%, its highest level since 2011, and warned of further hikes as the unending US war on Iran pushes prices “permanently higher”.

The widely expected fourth increase to the cash rate this year will add to repayment costs for millions of mortgage holders. Before Tuesday’s meeting, it sat at 4.35%.