The Reserve Bank of Australia (RBA) has raised its key interest rate to 4.6%, its highest level since 2011. The decision was made unanimously by the RBA's rate-setting board.
AI Boom Cited as Factor
RBA governor Michele Bullock said the global AI boom has "driven significant price rises" and is contributing to demand in the Australian economy.
Inflation Concerns and Future Hikes
In a statement accompanying the decision, the RBA warned that its fears about inflation are beginning to be realised. It also indicated it is ready to lift interest rates again if necessary.
