Reserve Bank raises interest rates to an 18-year high, the fifth hike this year

• Full report: RBA hikes cash rate for fifth time this year in blow to mortgage holders

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The Reserve Bank has hiked rates for the fifth time this year, from 4.6% to 4.85%, in a bid to regain control of surging inflation amid the ongoing global oil shock triggered by the war in the Middle East.

The RBA’s decision to hit mortgage holders again comes as no surprise after inflation jumped to 4.3% in the year to September, and following tough talk from senior central bank officials over recent days and weeks.