The Reserve Bank of Australia raises interest rates

The Reserve Bank of Australia raised interest rates in response to stubbornly high inflation, ending a five-month pause.
The increase takes Australia’s official cash rate to 4.35%, from 4.10%, representing its highest level in more than a decade.

The move was widely expected by economists after inflation in the three months through September showed prices of services, fuel, and rents climbing again.
“Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago,” Governor Michele Bullock said  after chairing her second meeting.
Australia’s economic recovery from the Covid-19 pandemic has been supported by a resilient consumer and record migration that has eased labor shortages and boosted house prices. But those forces are also keeping inflation elevated by strengthening demand for services, including education, and intensifying competition for places to live.
Consumer prices in Australia in the three months through September rose by 5.4% over the year prior. That is almost double the annualized rate in the U.S. for the same period. The inflation rate is also significantly higher than in the eurozone.