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Australia’s central bank has raised interest rates to a decade high as it seeks to bring down soaring prices.
The Reserve Bank of Australia (RBA) on Tuesday lifted the benchmark rate by a quarter-percentage point to 3.1 per cent.
Along with six previous hikes since May, the jump adds more than 1,000 Australian dollars ($672) to the monthly cost of an average mortgage.
RBA Governor Philip Lowe said inflation remained too high at 6.9 per cent, far above the target of 2-3 per cent.
He said; “Global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role."
Lowe said he expected inflation to rise to 8 per cent during the final quarter before easing next year.
Australia’s inflation slowed to 6.9 per cent in October, while home prices fell for a seventh straight month in November.
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