Interest rates in Australia have been raised for the fifth time in nine months. The new rate was set at 6.25% by the Reserve Bank of Australia amidst fears of runaway inflation.
A change was not expected until later in the year. It was anticipated that the new goods and services tax, levied at 10% and in operation since July 1, would force up the price index by September. However, the rate of inflation for the June quarter showed that the predicted increase was already on its way before the new tax had time to take effect, prompting the Reserve Bank of Australia to act with caution.
Financial Times
