Economy
Australia raises interest rate to 4.85 percent
Australia's central bank raised its interest rate by a quarter percentage point to 4.85%, in a six-to-three vote. It warned that inflation would remain elevated and forecast a return to the target range only in late 2027. This is an Australian decision, not an announcement of a rate change in Israel. Anthony Albanese, illustrative archive photo: Reuters.
· Source: Walla; RBA official statement. Anthony Albanese, illustrative archive photo: Reuters.
Australia's central bank today raised its interest rate by a quarter percentage point, from 4.60% to 4.85%, warning that inflation would stay high longer than previously forecast.
The bank's official November 3 statement said six members voted for the increase and three favored no change. According to Walla's financial report, it is the fifth increase this year and the highest rate since 2008.
The bank cited higher fuel and other commodity prices, domestic demand pressures and price increases associated with investment in artificial intelligence. It now expects inflation to return to the top of its 2%-3% target range only in late 2027.
The statement noted that the economy is slowing, house prices have fallen and unemployment has risen. The bank said it would assess incoming data and risks; it did not commit to a future rate path.
Source: Walla
