Australian central bank lifts key interest rate to 15-year high

The Reserve Bank of Australia has increased its key interest rate to a 15-year high in order to combat inflation fueled by surging oil prices. The bank raised the cash rate by 25 basis points, bringing it to 4.6%, citing factors such as conflict in the Middle East and high global energy prices. Australia's economic growth and inflation have reportedly been higher than anticipated, partly due to the rising cost of fuel, which is passed on to other goods and services.

Artificial intelligence is also contributing to increased technology costs. Meanwhile, Australia's major trading partners are enjoying stronger economic growth, largely attributed to AI-related investments that offset the impact of the Middle East crisis. However, the housing market downturn in Australia has created uncertainty domestically, as housing prices have fallen in most capital cities and new housing loans have declined significantly.