Australia’s central bank raised interest rates for the first time in more than a decade on Tuesday in a bid to rein in inflation, which has become a key issue in upcoming federal elections.
The Reserve Bank of Australia increased the prime lending rate by 25 basis points to 0.35%, the first move along this line since November 2010.
The entity assures that inflation levels, currently at 5.1% year-on-year, “have rebounded more quickly and to a higher level than expected.”
Rising costs of living have become the subject of heated debate ahead of the May 21 federal election, in which Conservative Prime Minister Scott Morrison’s government is in jeopardy.
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