Australia’s central bank is preparing to raise interest rates for the fifth time this year, as it continues its battle against stubbornly high inflation. Economists widely anticipate that the Reserve Bank’s board will lift the cash rate by a quarter-percentage point to 4.85% on Tuesday, marking the highest level in 18 years.
The decision, set to be announced at 2:30 p.m. local time, will be accompanied by updated economic forecasts. Governor Michele Bullock is scheduled to hold a press conference an hour later to discuss the move.
Money markets currently assign an 80% probability to the rate hike, reflecting strong expectations among investors. The move underscores the central bank’s determination to rein in inflation, which remains among the highest in the developed world.