Australia raises rates for first time since late 2023 as inflation hits six-quarter high

Core Viewpoint - The Reserve Bank of Australia (RBA) raised its policy rate by 25 basis points to 3.85%, marking its first rate hike since November 2023 due to rising inflation pressures [1][2]. Economic Indicators - Inflation in Australia is at its highest level in six quarters, with private demand growing faster than expected and capacity pressures increasing [2]. - The RBA's inflation target is set at 2.5%, and current conditions suggest that rate cuts are unlikely in the near term [3]. Economic Growth - Australia's economy grew by 2.1% in the third quarter, an increase from a revised 2% in the previous quarter, representing the fastest pace of expansion in about two years [5]. Future Rate Decisions - RBA officials, including Governor Michele Bullock, indicated that future interest rate decisions will be made on a "meeting-by-meeting" basis, depending on ongoing economic data and inflation trends [4].