SYDNEY, March 17 (Xinhua) -- Australia's central bank on Tuesday raised its key interest rate by 0.25 percentage points for the second consecutive month.
The Reserve Bank of Australia (RBA) said that the Monetary Policy Board decided to increase the cash rate target from 3.85 percent to 4.10 percent at its meeting on Tuesday, matching a 0.25 percentage point rise at the start of February.
It marks the first time that the central bank has lifted the cash rate target in consecutive months since June 2023.
Economists and banks had widely forecast that the Monetary Policy Board would increase rates at its meeting on Tuesday, following a spike in inflation in December and January and the expected economic impact of the ongoing Middle East conflict.
According to the latest official data from the Australian Bureau of Statistics, the consumer price index rose by 3.8 percent in the 12 months to December and January, exceeding the RBA's target range of 2-3 percent.
In its decision statement, the Monetary Policy Board said it judged that there is a material risk that inflation will remain above target for longer than previously anticipated.
"The conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation," it said.
The Monetary Policy Board will next meet in early May. ■
