<div id="readability-page-1">Rate hike decision: The RBA voted 8–1 to raise the cash rate to 4.35%, fully reversing last year’s policy easing. Inflation pressures: Persistent domestic cost constraints and surging fuel prices from the Iran war are keeping inflation elevated. Market reaction: The ASX 200 rose nearly 1% in morning trade, while the Australian dollar slipped to $0.71.</div>

<p>The RBA has raised the cash rate to 4.35%, reversing last year's easing, with an 8-1 vote. Inflation remains high due to domestic cost pressures and rising fuel prices linked to the Iran war. Following the announcement, the ASX 200 increased by nearly 1%, while the Australian dollar fell to $0.71.</p>

- The RBA voted 8–1 to increase the cash rate to 4.35%, reversing previous policy easing.  
- Ongoing domestic cost pressures and rising fuel prices due to the Iran war are contributing to elevated inflation.  
- In response, the ASX 200 rose nearly 1%, while the Australian dollar decreased to $0.71.

RBA lifts cash rate to 4.35% as inflation risks mount