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Australia's Rate Hike to 4.1% Amid Inflation and Tensions

3/18/2026

40 6 Full Breakdown

Summary

Story summary

The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.1% in 2025 to address inflation and Middle East tensions.
It was the second 2025 rate hike and reversed two of the three cuts.
The decision passed 5-4, according to Michele Bullock, Governor of the Reserve Bank of Australia.
Inflation stood at 3.8%.
Oil prices rose due to disruptions in the Strait of Hormuz.

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Story summary

The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.1% in 2025 to address inflation and Middle East tensions.
It was the second 2025 rate hike and reversed two of the three cuts.
The decision passed 5-4, according to Michele Bullock, Governor of the Reserve Bank of Australia.
Inflation stood at 3.8%.
Oil prices rose due to disruptions in the Strait of Hormuz.