Australia lifts cash rate to 3.35% with 9th rate hike

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — 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. The Reserve Bank of Australia’s decision on Tuesday to increase the 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. Reserve Bank Governor Philip Lowe said in a statement, “High inflation makes life difficult for people and damages the functioning of the economy.” The board is increasing interest rates to try to bring inflation within the bank’s target band of 2% to 3%, while hoping to avoid recession.