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AP National Business

Australian central bank decides first rate hike in 11 years

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Published 11:42 PM

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australia’s central bank has lifted its benchmark interest rate for the first time in more than 11 years. The cash rate rose from 0.1% to .35%in a move potentially damaging to a government that will seek reelection on May 21. A rise on Tuesday was widely expected after official data released last week showed that Australia’s inflation rose to 5.1% in the year through March. It is the highest annual rate since 2001. Inflation in the latest March quarter was sharply higher than the 3.5% three months earlier. The Reserve Bank of Australia adjusts interest rates to keep inflation within a 2-3% target band. The cash rate has been at a record low 0.1% since November 2020. 

Article Topic Follows: AP National Business

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