Reserve Bank Hikes Rates to 15-Year High in Fight Against Inflation

Australia's Reserve Bank raised its key interest rate to a 15-year high on Tuesday in an effort to combat rising inflation pressures. The cash rate was increased by 25 basis points to 4.6% from 4.35%, the fourth hike this year.

The decision was unanimous among the nine-member policy committee, which judged that it couldn't wait any longer to respond to resilient domestic demand and increasing energy costs. Governor Michele Bullock will hold a press conference at 3:30 p.m. in Sydney to discuss the move.