Australian central bank hikes rate for 1st time in 11 years

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australia’s central bank has lifted its benchmark interest rate for the first time in more than 11 years. The cash rate rose to 0.35% from 0.1% in a move potentially damaging to a government that will seek reelection on May 21. Tuesday’s decision by the Reserve Bank of Australia was widely expected after official data released last week showed that Australia’s inflation rose to 5.1% in the year through March. That was the highest annual rate since 2001. The RBA adjusts interest rates to keep inflation within a 2%-3% target band. The cash rate had been at a record low 0.1% since November 2020.