Australian central bank boosts cash rate to 4.1 per cent with 12th hike

CANBERRA, Australia –

Australia’s central financial institution on Tuesday lifted its benchmark rate of interest for a twelfth consecutive time, to 4.1 per cent, and warned additional rises might observe.

The Reserve Bank of Australia boosted the money price by 1 / 4 of a share level at its newest month-to-month assembly. That adopted a higher-than-expected 6.8 per cent annual inflation price reported for the January-March quarter.

Reserve Bank Governor Philip Lowe stated it will take time for inflation to fall to the goal vary of two per cent to three per cent.

“This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe,” Lowe stated in a press release.

The money price is now at its highest stage since April 2012.

The financial institution first began jacking up rates of interest in June 2022.

Lowe stated additional will increase is likely to be wanted.

“The board will continue to pay close attention to developments in the global economy, trends in household spending, and the outlook for inflation and the labor market,” he added.