Australia raises benchmark rates to 15-year high as it fights sticky inflation
- The Reserve Bank of Australia raised its benchmark cash rate by 0.25 percentage points to 4.6 per cent on Tuesday, marking the fourth increase this year to combat persistent inflation.
- Rising fuel costs from the Middle East conflict prompted the decision, as Reserve Bank officials expressed growing impatience with returning inflation to the 2–3 per cent target range.
- The hike adds more than $90 monthly to repayments on a typical $600,000 mortgage, while AMP chief economist Shane Oliver noted combined rate and petrol costs have increased average household expenses by $530 since January.
- At 4.6 per cent, Australia now holds one of the highest official interest rates among major economies, reaching its highest level in 15 years despite rising unemployment and falling house prices.
- The Bureau of Statistics will release September quarter inflation data on Wednesday, as the Reserve Bank watches for signs of whether these rate increases are successfully curbing sticky inflation or cooling the economy further.
103 Articles
103 Articles
The Australian Reserve Bank has today raised the main interest rate by 25 basis points to 4.6% from 4,35%, to its highest level in 15 years, as part of efforts to curb inflation.
Australia Lifts Interest Rate To 4.60%; Highest Since Late 2011
The Reserve Bank of Australia raised its benchmark rate by a quarter-point on Tuesday, taking it to a 15-year high level, as risks to inflation materialized amid geopolitical tensions. The policy board, governed by Michele Bullock, unanimously decided to raise the cash rate target to 4.60 percent, the highest level since late 2011. The decision came in line with expectations.
Australia's central bank raised its benchmark interest rate to a 15-year high of 4.6 percent on Tuesday, a move aimed at curbing inflationary pressures fueled by both the resilience of domestic demand and rising energy prices, Bloomberg reported.
The Central Bank of Australia has assured that it will "continue to do what it deems necessary" to contain inflation, which includes further increases in interest rates. In July inflation in Australian territory stood at 3.5%.
Coverage Details
Bias Distribution
- 46% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
