Australia raises policy rate to
Photo: Mark Baker AP/TT

Australia raises policy rate to 4.60%, highest in 15 years

The Reserve Bank of Australia is raising its policy rate by 0.25 percentage points to 4.60 percent. This is the highest policy rate in the country in 15 years.

The increase - which analysts had expected - comes after a period of higher energy costs and stable domestic demand, a combination that the central bank believes could create too much inflationary pressure.

The central bank warns in its interest rate announcement that further rate increases may be needed to dampen the trend.

The probability of another rate hike in November is 56 percent in pricing among traders in the fixed-income market after Tuesday's interest rate announcement.

AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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