Australia lifts cash rate to 3.35% with 9th rate hike
Australia's central bank has lifted its benchmark interest rate for a ninth consecutive time to 3.35% as it battles inflation that rose to 7.8% in the latest quarter
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Australia's central bank on Tuesday lifted its benchmark interest rate for a ninth consecutive time to 3.35% as it battles inflation that rose to 7.8% in the latest quarter.
The Reserve Bank of Australia’s decision to increase its cash rate by 0.25 of a basis point was widely anticipated after the annual inflation rate for the December quarter was the highest since 1990.
“High inflation makes life difficult for people and damages the functioning of the economy,” Reserve Bank Governor Philip Lowe said in a statement.
“And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later,” he added.
The board has been raising interest rates to try to bring inflation within the bank’s target band of 2% to and 3%, while hoping to avoid recession, he said.
“But the path to achieving a soft landing remains a narrow one,” Lowe said.