RBA Raised Key Rate to Counter Upside Price Risk, Remains Alert

Central Banks RBA Raised Key Rate to Counter Upside Price Risk, Remains Alert Australia’s central bank raised its key interest rate two weeks ago because upside risks to inflation were coming to pass and waiting could prove costly, while adding the outlook would be heavily influenced by the ongoing conflict in the Middle East. “Members discussed the challenges of judging how large the upside risks to inflation were or could become,” the Reserve Bank said in minutes of its September meeting released Tuesday, after raising the key rate to 4.6%. The board will do what’s needed to meet its mandate, “including increasing the cash rate target further if required.”