Australia's central bank raises interest rates over inflation concerns
Australia's central bank on Tuesday raised its key interest rate by 25 basis points to 4.35 percent amid renewed inflation pressures, News.Az reports, citing Xinhua.
The Reserve Bank of Australia (RBA) announced that its Monetary Policy Board decided to lift the cash rate target from 4.10 percent to 4.35 percent at its meeting on Tuesday. The decision was supported by eight members of the board, while one member voted to keep rates unchanged.
The central bank stated that inflation has risen significantly since late 2025, driven in part by capacity constraints and higher fuel and commodity prices linked to the Middle East conflict.
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According to updated projections, the RBA now expects headline inflation to peak at 4.8 percent in June, while trimmed mean inflation is forecast to reach 3.8 percent over the year to June. Both figures are higher than previously estimated.
In its statement, the board noted that inflation is likely to remain above the target range for an extended period and that risks remain tilted to the upside, which it said justified the decision to increase the cash rate target.
By Nijat Babayev
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