SYDNEY, May 5 — Australia’s central bank on Tuesday raised its key interest rate by 25 basis points to 4.35 percent amid renewed inflation pressures.
The Reserve Bank of Australia (RBA) said that the Monetary Policy Board decided to increase the cash rate target from 4.10 percent to 4.35 percent at its meeting on Tuesday, with eight members voting for the increase and one voting to hold rates unchanged.
The central bank said inflation had risen markedly since late 2025, driven partly by capacity pressures and higher fuel and commodity prices linked to the Middle East conflict.
The RBA now expects headline inflation to peak at 4.8 percent in June and trimmed mean inflation at 3.8 percent over the year to June, both higher than previously forecast.
In its decision statement, the board said inflation was likely to remain above target for some time and that the risks remain tilted to the upside, making it appropriate to increase the cash rate target. (Namibia Daily News/Xinhua)
