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Australia's central bank raises rates to 4.85% to curb inflation

The Reserve Bank lifted the cash rate from 4.6% in its fifth increase this year, taking borrowing costs to an 18-year high.

By the NationsDesk desk

· 18 hr ago

Australia's central bank raises rates to 4.85% to curb inflation
Photograph: Photograph: Hollie Adams/Reuters

What to know

  • The cash rate rose by 25 basis points to 4.85%.
  • It is the fifth hike by the RBA this year.
  • Inflation reached 4.3% in the year to September.
  • The bank cited a global oil shock triggered by war in the Middle East.

Australia's central bank raised its benchmark interest rate to 4.85% from 4.6% on Tuesday, its fifth increase this year and the highest level in 18 years.

The Reserve Bank of Australia is trying to bring surging inflation back under control amid a global oil shock set off by the war in the Middle East. Consumer prices rose 4.3% in the year to September.

The decision was widely expected after recent warnings from senior central bank officials, and adds pressure on mortgage holders.

Reporting credit

Written by the NationsDesk desk. The underlying reporting is by TG.

Australia Interest Rates Inflation Reserve Bank

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