Australia's central bank raises cash rate to 15-year peak
TLT•The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%, its fourth hike this year and a 15-year high. It said inflation was too high and it was prepared to raise rates further if needed.
1. Rate reaches 4.60%
The Reserve Bank of Australia board unanimously raised its cash rate by 25 basis points to 4.60% on Tuesday, bringing its rate increases this year to a full percentage point. The bank said inflation was too high and it was prepared to hike further if needed.
2. Inflation risks persist
The board said some upside inflation risks were materialising, with energy costs high and productivity weak at home. Core inflation was running at 3.6%, above the RBA's target range of 2% to 3%, and markets were pricing in at least one more hike.
