Reserve Bank of Australia Raises Interest Rates to 4.85% Amid Persistent Inflation
The Reserve Bank of Australia (RBA) has increased its benchmark cash rate by 25 basis points to 4.85%, marking the highest level since November 2008. This fifth rate hike this year aligns with economist expectations and underscores the central bank's commitment to combating rising inflation, which reached 4.3% in September. Governor Michele Bullock cited geopolitical tensions affecting oil prices and robust domestic spending as primary drivers of inflationary pressure. While economic growth has slowed, with GDP increasing by only 2.1% in the June quarter compared to 2.5% in March, the RBA maintains that a recession is not currently their base case despite the tightening monetary policy.