Australia’s central bank raised interest rates to their highest level in 18 years to combat inflation
Australia’s Reserve Bank raised its cash rate target by 0.25 percentage points to 4.85% on Tuesday, an 18-year high and its fifth increase this year. The board split 6–3, with three members favoring no change. It cited fuel and commodity costs and AI-related investment adding to technology prices. Governor Michele Bullock said recession was “not our base case.”
More context
The Reserve Bank of Australia raised its cash rate target by 0.25 percentage points to 4.85% on Tuesday, its fifth increase this year and the highest level since late 2008. The nine-member monetary policy board voted 6–3, with three members favoring a hold at 4.60%.
The bank cited higher fuel and commodity prices linked to the Middle East conflict, as well as rapid price rises for technology goods associated with AI-related investment. It now expects inflation to remain elevated through much of 2027 and return to the top of its 2%–3% target range only in late 2027, about nine months later than previously forecast. Consumer prices rose 4.3% in September.
RBA Governor Michele Bullock said a recession was “not our base case at the moment.”
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Reporting
- News.Az — Australia raises key interest rate to 18-year high | News.az
- ABC News (Australia) — RBA lifts interest rates to highest level in 18 years to try to dampen inflation - ABC News
- TradingView — Australia lifts rates to 18-year high as AI boom, energy costs fuel inflation — TradingView News
- Firstpost — RBA raises interest rates to 18-year high in fifth hike this year, piling pressure on borrowers
- The Nightly — RBA interest rates: Monetary board hikes to 18-year high of 4.85 per cent to combat rising inflation | The Nightly
- CNBC — Australia hikes rates to 18-year high to fight inflation
- The Australian Financial Review — RBA interest rate rise will feel like a recession for most Australians, says governor Michele Bullock
- theconversation.com — RBA hikes interest rates to an 18-year high, warning inflation will hurt for another year
Verifier’s note
ABC News, TradingView carrying Cointelegraph, Firstpost, The Nightly, CNBC, The Conversation, and AFR all report that the RBA raised rates to 4.85%, an 18-year high, to address inflation; News.az reports the same event using Bloomberg-sourced material. The reports are current and corroborate the proposed claim.