Australia's central bank raises rates to 12-year high, tempers hawkish stance

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Australia's central bank raises rates to 12-year high, tempers hawkish stance
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Deja Bù: Mark reconnects with Jessica Harnois, founder Bù Wines | SaltWireSYDNEY - Australia's central bank raised interest rates to a 12-year high on Tuesday, ending four months of steady policy, but left it open on whether even more tightening would be needed to bring inflation to heel.

This was a step back from the October decision which stated that some further tightening"may be required", and was taken by markets as a sign this might be the last hike of the cycle. "You'd think they'd have opened the door to a bit more than this, but they are just trying to do as little as possible. The hurdle to hike is high."

A hike had seemed possible since consumer price inflation topped forecasts in the third quarter to run at 5.4%, well above the RBA's long term target range of 2-3%.

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