Australia Raises Interest Rate

Australia’s Reserve Bank raised its benchmark interest rate to 4.25 percent and signaled further increases.

This was the fifth increase in borrowing costs in the last six meetings by the Central bankers.

RBA Governor Stevens said the move was a “further step” in returning interest rates to average levels. This decision indicates RBA concerns that inflation and house price increases will surge without greater monetary restraint, even after weaker retail sales and home construction numbers last month.