Australia raises interest rates to 11-year high

SHAFAQNA TURKEY – The Central Bank of Australia (RBA) has raised the discount rate to its highest level in 11 years to fight inflation.

The Reserve Bank of Australia (RBA) raised interest rates to an 11-year high of 3.6 percent in an attempt to contain inflation.

The bank raised its interest rate by 25 basis points to 3.6 percent, the highest level since mid-2012, after the monthly regular meeting of the board of directors.

It was the 10th consecutive record meeting at which the interest rate was increased from just 0.1 percent at the beginning of May last year.

The RBA expects economic growth to slow to 1.5% this year and then to 1.5% as interest rates hit consumers, raising some concerns that the economy could slip into recession in the next 24 months.

Bloomberg XT

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