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Australia’s central bank on Tuesday raised the interest rate by 25 basis points for a second straight month while revising up its inflation outlook, saying that more tightening will be needed ahead.
Wrapping up its November policy meeting, the Reserve Bank of Australia (RBA) lifted its cash rate to a nine-year peak of 2.85 percent, the seventh hike in as many months.
It had surprised many in the markets last month by downshifting to a quarter-point rate hike, following four consecutive moves of 50 basis points, citing an already substantial rise in rates.
“The Board expects to increase interest rates further over the period ahead. It is closely monitoring the global economy, household spending and wage- and price-setting behaviour,” RBA Governor Philip Lowe said in a statement.
