Australia central bank lifts cash rate to 2.35% in 5th hike

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australia’s central bank has boosted its benchmark interest rate for a fifth consecutive month to a seven-year high of 2.35%.The Reserve Bank of Australia’s decision on Tuesday was the cash rate’s fourth consecutive hike of half a percentage point. When the bank lifted the rate by a quarter percentage point at its monthly board meeting in May, it was the first rate hike in more than 11 years. It’s now at its highest point since Feb. 2015. Reserve Bank Governor Philip Lowe says there are more rate hikes ahead a monthly board meetings as directors attempt to reduce inflation to a target band of 2% to 3%. Australian inflation is running at 6.1%.