Central Bank of Australia raises interest rates for the first time in 11 years

Canberra, May 3 (AP):The Australian Central Bank raised its benchmark interest rate on Tuesday for the first time in more than 11 years. The cash rate has increased from 0.1% to 0.35%.

The rise was widely expected after official data released last week showed that Australia’s inflation rate had risen to 5.1% in the year to March. This is the highest annual rate since 2001 when the newly introduced 10% federal sales tax caused a temporary surge.

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Inflation in the most recent March quarter was significantly higher than 3.5% three months ago. The March results were caused by the surge in fuel and housing costs and food shortages caused by the recent floods in Australia.

The Reserve Bank of Australia adjusts interest rates to keep inflation within the 2-3 percent target range.

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The cash rate was 0.1%, the lowest ever since November 2020.

Banks finally raised interest rates in November 2010. Since then, the cash rate has risen a quarter percentage point to 4.75 percent.

This is the first time a bank, whose government independence was enacted in 1996, has changed interest rates during a federal campaign since 2007.

Two weeks after the benchmark rate rose 0.25 percentage points to 6.75 percent in November 2007, Prime Minister John Howard’s conservative government was voted absent after more than 11 years of administration.

Prime Minister Scott Morrison’s conservative government is calling for a fourth, three-year term, which is unusual for the May 21 election. (AP)

(This is an edited and auto-generated story from the Syndicated News Feed. LatestLY staff may not have changed or edited the content body) Central Bank of Australia raises interest rates for the first time in 11 years

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