‘If we have to change tack, we will’: RBA hikes rates but not aiming to put Australia into recession, Bullock says

RBA interest rates: Australian household budgets have already been under pressure after an interest rate rise in February and soaring petrol prices. Photograph: Dave Hunt/AAP

The Reserve Bank has increased interest rates and left the door open to further hikes, warning inflation will stay higher for longer amid war in Iran and soaring petrol prices.

The hike followed a move in February and lifted the RBA’s cash rate target to 4.1%, back to where it was in February 2025, wiping out the relief offered by two cuts last year.