SYDNEY, Sept 29 (Reuters) – Australia’s central bank raised its cash rate to a 15-year high of 4.60% on Tuesday in its fourth hike of the year, saying inflation was too high and it was prepared to hike further if needed.
Wrapping up its September policy meeting, the Reserve Bank of Australia board voted unanimously to lift rates by 25 basis points, bringing the tightening this year to a full percentage point. The board said some of the upside risks to inflation were materialising with energy costs high and productivity weak at home.
Investors had wagered heavily on an increase given core inflation was running at 3.6%, well above the RBA’s target range of 2% to 3%, and markets are priced for at least one more hike ahead.
(Reporting by Wayne Cole and Stella Qiu; Editing by Tom Hogue)
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