Australia hikes rates to 18-year high to fight inflation

The Reserve Bank of Australia's decision to raise interest rates marked the fifth increase this year, a move that aligned with expectations from economists polled by Reuters. According to The Guardian, the hike was expected to bring the cash rate to 4.85%, reaching its highest level in 18 years.

Treasurer Jim Chalmers told RN that Australians are bracing for a "difficult decision" and noted that further rate rises would make things harder for people already under substantial pressure. Chalmers stated the government is currently working through spending pressures and economic forecasts to prepare a mid-year budget update for December, noting that savings have been found in all eight previous budget updates.

The Guardian Australia reported that Prime Minister Anthony Albanese defended his government's record while attending a Commonwealth heads of government meeting in Antigua and Barbuda. Albanese stated that engaging with the world allows the country to address national security interests and strengthen the economy.

Brief written by urgent.news from CNBC, The Guardian Australia, The Guardian — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.