Australia says more hikes not off the table after raising rates to 15-year high
The hike of 25 basis points was in line with expectations by economists polled by Reuters.
TL;DR
- Australia's central bank raised its policy rate to 4.6%, a 15-year high.
- The 25 basis point hike was in line with economist expectations.
- Inflation is being fueled by the Middle East conflict and AI-related demand.
- The Reserve Bank of Australia (RBA) has raised rates four times this year, totaling 100 basis points.
- The RBA stated it will do what is necessary to contain inflation, including further rate increases.
- Australia's inflation has been above the target band of 2%-3% for 2026.
- The country's economy grew at 2.1% in the second quarter, a slowdown from the first quarter.