Australia raised its interest rate to an 18-year high

The Reserve Bank of Australia raised its key interest rate to 4.85%. This is the highest level in 18 years and marks the fifth increase this year.

The decision was supported by six of the nine members. At the same time, the bank removed from its statement the language indicating further rate hikes. This has fueled market expectations that the rate could remain unchanged in December.

According to the bank's forecast, inflation will reach 4.5% by the end of the year and will only return to the target range of 2-3% in the second half of next year.

The high rates have had a particularly strong impact on the real estate market. According to the bank's governor, Michele Bullock, the next move has not yet been decided.

Source: Reuters