Australian central bank leaves its benchmark cash rate at 4.1% but warns there may be further hikes
CANBERRA, Australia (AP) — Australia’s central bank left its benchmark interest rate at 4.1% at a policy meeting Tuesday after inflation fell to 5.6% in May from 6.5% a month earlier.
The Reserve Bank has lifted the cash rate 12 times since May last year to reduce inflation to a target range of 2% to 3%.
Higher interest rates raise the cost of borrowing for both businesses and consumers, slowing economic activity and helping to relieve price pressures that have flared after the slowdowns of the COVID-19 pandemic.