Australia raises benchmark rates to 15-year high as it fights sticky inflation

Michele Bullock, governor of the Reserve Bank of Australia (RBA), attends a news conference at the bank's head office in Sydney, Australia, on Tuesday, Dec. 9, 2025. Australia's central bank kept its key interest rate unchanged for a third straight meeting in a widely expected decision, while reiterating that future moves will hinge on incoming economic data. Photographer: Brendon Thorne/Bloomberg via Getty ImagesBloomberg | Bloomberg | Getty ImagesAustralia's central bank on Tuesday raised rates to 4.6%, their highest level in 15 years as the country looks to contain inflation stoked by the Middle East conflict. The hike of 25 basis points was in line with expectations by economists polled by Reuters.The Reserve Bank of Australia has now raised rates four times this year by a total 100 basis points as inflation remains sticky.In its statement, the RBA said some of the upside risks flagged in its August meeting were now materializing. "The conflict in the Middle East has broadened and global energy prices are now much higher than had been assumed," the central bank wrote, adding that AI-related demand was driving rapid price increases for technology-related goods.The RBA also said ...