SYDNEY: Australia's central bank on Tuesday raised its benchmark policy rate for the first time in two years, saying the economy was growing faster than expected and inflation was likely to remain above target for some time.
The Reserve Bank of Australia now joins the Bank of Japan as the only other developed-world central bank tightening policy at the moment. Markets are still priced for rate cuts in the U.S., UK and Canada, while the European Central Bank is widely expected to be on an extended pause.
