Australia Hikes Interest Rate to 15-Year High Amid Oil Price Pressures

The Reserve Bank of Australia has raised its key interest rate to a 15-year high in an effort to curb inflation caused by rising oil prices. The cash rate was lifted by 25 basis points to 4.6%, with the bank citing disruptions to global oil supply and higher fuel costs being passed through to other goods and services.

The Reserve Bank also pointed to the rapid growth in technology-related prices, driven by artificial intelligence demand. Australia's major trading partners are experiencing stronger economic growth than expected, but a downturn in the country's housing market has created uncertainty at home.