World : Australian Central Bank Raises Interest Rates To 15-Year High
SYDNEY, Sept 29 (Bernama-Xinhua) -- Australia's central bank on Tuesday raised interest rates to a 15-year-high, citing inflation driven by the conflict in West Asia, reported Xinhua.
The Reserve Bank of Australia raised its key interest rate to a 15-year high on Tuesday in an effort to curb inflation driven by rising oil prices. The bank lifted its cash rate by 25 basis points to 4.6%, citing a widening conflict in the Middle East and high global energy prices. Disruptions to global oil supply have further exacerbated the situation, with recent data indicating that Australia's growth and inflation have been higher than expected.
Higher fuel prices are being passed on to other goods and services, the bank noted. Additionally, the rise of artificial intelligence is driving up technology costs. The bank highlighted that AI-related demand is fueling rapid growth in global prices for technology-related goods. Moreover, Australia's major trading partners are experiencing stronger economic growth than anticipated, with AI-related investments outweighing the adverse effects of the Middle East conflict.
However, a downturn in Australia's housing market has created economic uncertainty at home, with housing prices falling in most state capitals and new housing loans declining noticeably.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Australian central bank lifts key interest rate to 15-year high freemalaysiatoday.com
