Australian central bank lifts cash rate to 9-year high 2.6%

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australia’s central bank has boosted its benchmark interest rate for a sixth consecutive month to a nine-year high of 2.6%. The Reserve Bank of Australia’s increase of a quarter percentage point of the cash rate is smaller than those at recent monthly meetings. The banks had hiked the rate by half a percentage point at the last four meetings. Most economists had expected another 0.5% rise. When the bank lifted the rate by a quarter percentage point at its board meeting in May, it was the first rate hike in more than 11 years. It’s now at its highest point since August 2013, when the bank cut the rate from 2.75% to 2.5%.