Australia raises interest rate to highest level in 15 years

The Reserve Bank of Australia raised its key interest rate by 25 basis points on Tuesday, taking it to 4.6% from 4.35%.

The increase pushed the benchmark rate to its highest level in 15 years as the central bank seeks to curb inflation.

Higher interest rates are intended to ease price pressures by making borrowing more expensive, helping to slow spending and demand across the economy.

The latest move tightens monetary conditions further, putting the fight against inflation at the centre of the bank’s policy action.