Australia hikes rates again and warns inflation will stay higher for longer
Australia's central bank on Tuesday raised its policy rate to 4.35%, matching its December 2024 peak, as inflation remains elevated. The move by the Reserve Bank of Australia was in line with expectations in a Reuters poll of economists and marked its third consecutive rate increase. Eight members of the board voted for the hike, while one voted to hold rates at 4.1%. In its statement, the RBA said inflation had picked up materially in the second half of 2025, with conflict in the Middle East pushing up fuel and commodity prices. "As expected, developments in the Middle East are having an impact on inflation. ...
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