Australia raises interest rates to 11-year high

The Reserve Bank of Australia (RBA) has raised its policy rate to an 11-year high in a bid to combat inflation. The Reserve Bank of Australia (RBA) has raised interest rates to an 11-year high of 3.6 per cent as it tries to bring inflation under control. The bank raised the cash rate by 25 basis points to 3.6 per cent, the highest level since mid-2012, after its monthly board meeting. It was the 10th consecutive meeting on record at which the cash rate was raised, from just 0.1 per cent at the start of May last year. The RBA expects economic growth to slow to 1.5 per cent this year and beyond as interest rates begin to weigh on consumers, raising some fears that the economy could fall into recession in the next 24 months.