The country that raised interest rates to an 18-year high

Australia's central bank raised the interest rate by 0.25% to 4.85%, the highest level since 2008. This is the fifth rate hike since the beginning of the year, amid persistent inflation. The decision was passed by a vote of six to three.

Australia's central bank raised the interest rate by 0.25 percentage points to 4.85% - an 18-year high and the highest level since 2008. This is the fifth rate hike since the start of 2026, amid persistent inflation that refuses to moderate. The decision was passed by a relatively narrow vote of six to three, indicating disagreements over the need for further rate increases. The move illustrates the challenge central banks face in curbing price rises without harming growth and households. For Australian borrowers, this means additional increases in financing and mortgage costs.

The country that raised interest rates to an 18-year high