Australia's central bank hikes key interest rate to 18-year high
Australia's central bank raised its key interest rate to a 18-year high on Tuesday, citing the prolonged war in the Middle East and persistent inflationary pressures.
The Reserve Bank of Australia has raised its key interest rate to a 18-year high of 4.85%, according to a statement released by the bank. Inflation continues to be elevated, primarily due to increased fuel and commodity prices resulting from the conflict in the Middle East. The rise in technology-related goods' prices is also contributing to inflation.
This is the fifth interest rate hike this year, exacerbating cost-of-living pressures for Australian households, particularly through higher mortgage payments. The move brings rates back to levels last seen at the end of 2008, during the global financial crisis. The Reserve Bank of Australia expressed ongoing uncertainty about domestic economic activity and inflation prospects.
Global oil supply disruptions continue to exert upward pressure on energy prices and inflation. Prolonged uncertainty may lead to slower growth both overseas and within Australia.
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