Australian central bank hikes rate to 6-year high 1.85%

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australia’s central bank has boosted its benchmark interest rate for a fourth consecutive month to a six-year high of 1.85%. The Reserve Bank of Australia’s decision on Tuesday was the third consecutive hike of half a percentage point. When the bank lifted its cash rate by a quarter percentage point at its monthly board meeting in May, it was the first rate hike in more than 11 years. The cash rate is now at its highest point since May 2016, when the bank cut it to 1.75% from 2%. Tuesday’s hike was widely anticipated after official data released last week showed inflation in the year through June was 6.1%, up from 5.1% in the year through March.