Australia central bank raises rates by 25 bps to 3.35%

The RBA said core inflation had been higher than expected and higher rates would be needed to ensure that inflation returns to its target range of 2% to 3%. — Reuters

SYDNEY: Australia’s central bank raised its cash rate 25 basis points (bps) to a decade-high of 3.35% yesterday and reiterated that further increases would be needed, while dropping previous guidance that they were not on a pre-set path.

Wrapping up its February policy meeting, the Reserve Bank of Australia (RBA) said core inflation had been higher than expected and higher rates would be needed to ensure that inflation returns to its target range of 2% to 3%.