Australia’s central bank on Tuesday raised its policy rates by 50 basis points, the most in 22 years, to 0.85% to combat surging inflation.
In its June policy meeting, the Reserve Bank of Australia (RBA) decided to hike its cash rate by 50 basis points to 0.85%, which was higher than the market expectations of a 25 basis point rise.
The lift came after the central bank had hiked its interest rates by a quarter point in May, marking the first rate hike since 2010.
Australia’s annual inflation rose to 5.1% in the first quarter from 3.5% for the quarter ended December 2021. The 5.1% figure was the highest since 2001.
The RBA warned that core inflation could now hit 4.6% by December this year, which is two percentage points higher than its previous forecast made in February.
