Australia hikes rates to 18-year high to fight inflation

The Reserve Bank of Australia is expected to raise interest rates on Tuesday, marking the fifth hike of the year. According to The Guardian, the increase would likely bring the cash rate to 4.85%, reaching an 18-year high. CNBC World and CNBC report that the decision was in line with expectations from economists polled by Reuters.

Treasurer Jim Chalmers told RN that Australians are bracing for a "difficult decision" and noted that people are already under substantial pressure. Chalmers stated that the government is working through spending pressures and economic forecasts to prepare a responsible mid-year budget update for December. He noted that the expenditure review committee met on Monday and will meet again on Wednesday to discuss savings.

Brief written by urgent.news from CNBC World, CNBC, The Guardian Australia, The Guardian — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.