The Reserve Bank of Australia has lifted its key interest rate to the highest level in 18 years, marking the fifth rate hike this year. In a split decision on Tuesday, policymakers raised the cash rate by a quarter-percentage point to 4.85%, extending what is now the most aggressive tightening cycle among developed nations.
The move comes as Australia's central bank continues its efforts to rein in inflation, which remains above target levels. Governor Michele Bullock is scheduled to address the decision in a press conference at 3:30 p.m. in Sydney, where she is expected to face questions about future rate adjustments.
The decision was widely anticipated, but the split vote suggests some division among policymakers. The rate hike occurs against a backdrop of global energy shocks and domestic capacity constraints, which may influence future monetary policy decisions.