Australia Hikes Rates to 18-Year High

The Reserve Bank of Australia raised its cash rate 25 basis points to 4.85%, the highest level since 2008, in a split 6-3 vote. Three board members wanted to hold at 4.60%. The bank now expects inflation to stay above 3% for the coming year and not return to target until late 2027, three quarters later than it forecast in August. $AUD