Australia raises rates to fresh high

The Reserve Bank of Australia's rate-setting board voted to raise rates 25 basis points to 7%, their highest level in over 11 years.

Tuesday's rate hike, which was widely expected, follows a recent rise in inflation. CPI inflation on a year-end basis picked up to 3% in December, with underlying inflation hitting 3.5%. Commenting on the rise, Glenn Stevens, the governor, said: "This was a little higher than was expected a few months ago."

"Indicators of demand remained strong through the secon