RBA lifts interest rates again (ABC):
The Reserve Bank of Australia (RBA) has raised its official cash rate 0.25 per cent to 7 per cent, in a move which will increase the pressure on struggling families.I can't tell you how relieved I am that the RBA has done this. With Bernanke and the US Fed cutting rates with no thought of its consequences, I am very glad that the RBA has opted to lift rates to tackle inflation.
Interest rates are now at their highest level since 1996 after 11 consecutive increases.
In a break with tradition the RBA announced the decision on the same day as its board meeting, instead of waiting 24 hours as has previously been the case.
Economists had tipped a rate rise as a response to Australia's inflation problem, which Prime Minister Kevin Rudd last week proclaimed was the country's "public enemy number one".
The headline inflation rate is at 3 per cent, which is the top of the RBA's target band of 2 to 3 per cent.