Australia’s central bank raises rates 25 bp to over 10 year high at 3.60%

SYDNEY: Australia’s central bank raised its cash rate 25 basis points to the highest in more than a decade at 3.60% on Tuesday and said it expects further tightening will be needed to curb inflation.

Wrapping up its March policy meeting, the Reserve Bank of Australia (RBA) said wages growth was still consistent with the inflation target and recent data suggested a lower risk of a cycle in which prices and wages chase one another.

In a dovish step, the central bank changed a reference to further rate “increases”, saying instead that “further tightening” would be needed.

Australia’s central bank says more rate pain needed to tame inflation

This was the tenth hike since last May, lifting rates by a total of 350 basis points.