Australia’s Reserve Bank has lifted its key interest rate for the sixth time in as many months as the central bank seeks to stifle inflation before it rises to levels dogging economies elsewhere.
The RBA on Tuesday raised its cash rate 25 basis points to 2.6%. The increase was half the amount most forecasters predicted, a result that sent the Australian dollar lower by about half a cent to about 64.6 US cents. Stocks rallied higher for its best day in more than two years, gaining about 3.8%.
