Australia hikes interest rates again

The Reserve Bank of Australia has raised its key interest rate to 4.35%, marking the third consecutive hike this year.

Governor Michele Bullock cited soaring fuel prices and a deteriorating inflation outlook as the primary drivers for the decision.

The move has put immediate pressure on the federal government ahead of next week's budget announcement.

Treasurer Jim Chalmers defended the government's economic record but acknowledged that many Australians are feeling the bite of rising mortgage costs.