Australia's Central Bank Raises Cash Rate to 4.60%

Australia's Reserve Bank raised its cash rate target by 25 basis points to 4.60% on Tuesday, a unanimous decision at the Monetary Policy Board's September meeting. The bank said inflation remains too high and that some upside risks flagged in August are materialising, including higher energy prices after oil supply disruptions and pressure on domestic capacity. It said recent Australian growth and inflation have been stronger than expected, while consumer spending is easing and the labour market has softened. The board said three earlier increases this year had tightened financial conditions but further increases may be needed to return inflation to target.