From CNBC · Lim Hui Jie · · 1m 10s
Australia raises rates to 18-year high as inflation persists
The Reserve Bank of Australia lifted its benchmark rate to 4.85%, the highest since 2008, but inflation is now expected to linger until late 2027.
In brief
The Reserve Bank of Australia lifted its benchmark rate to 4.85%, the highest since 2008, but inflation is now expected to linger until late 2027. Australia's central bank raised rates to 4.85%, the highest since November 2008, as it battles persistent inflation now forecast to stay above target until late 2027…
RBA raises rates to 4.85%
The Reserve Bank of Australia raised its benchmark cash rate by twenty five basis points to four point eighty five percent on Tuesday, the highest level since November two thousand eight.
Split decision among board members
Six RBA board members voted for the increase while three opted for a hold. This was the central bank's fifth rate increase this year and third consecutive meeting with a hike.
Inflation forecast pushed back to late 2027
The RBA upgraded its inflation projections, saying inflation is now expected to remain elevated through much of two thousand twenty seven and not reach its two to three percent target range till late two thousand…
Higher fuel and AI investment driving prices
Higher fuel and commodity prices are pushing inflation up, alongside AI related investment driving rapid growth in technology related goods prices.
The big picture
Australia's central bank raised rates to 4.85%, the highest since November 2008, as it battles persistent inflation now forecast to stay above target until late 2027.
