Australia raises rates citing inflation pressures

The Reserve Bank of Australia announced on Wednesday2 March that it was increasing interest rates by 25 basis points, to 5.5 per cent. It was the first shift in monetary policy by the RBA since December 2003.

The RBA released a statement on its website from governor Ian Macfarlane.

For some time the Bank has been signalling that the cash rate would probably need to be moved higher during the current expansion. The decision to do so in March took into account the following main considerations:

The

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