Michele Bullock

The RBA is Australia’s central bank. Its key responsibility is setting the ‘cash rate’ — an interest rate it charges commercial banks for short-term loans.

What is the cash rate? The Reserve Bank chose to leave the cash rate unchanged on Tuesday – the last meeting of 2023.

Why did the cash rate rise? The Reserve Bank decided to raise the cash rate again on Tuesday, after keeping it unchanged since July.

Prices were 5.4% higher in September than the previous year, according to the latest official inflation figures.

The Reserve Bank of Australia (RBA) has kept the cash rate unchanged at 4.1% for a fourth consecutive month.

RBA Governor Philip Lowe will not be re-appointed for a second term, replaced instead by his deputy Michele Bullock.