Australia’s central bank lifts rates to 18-year high of 4.85% - The Business Times

Australia's central bank has raised its policy rate to 4.85%, an 18-year high, according to The Business Times. The move extends a tightening cycle that has lifted borrowing costs well above the lows that prevailed through much of the past decade, reflecting the central bank's continued focus on bringing inflation back toward target.

For markets, the headline matters less than the signal. A rate at an 18-year high affects the cost of credit across mortgages, business loans and consumer finance, and it can influence the currency and the valuation of rate-sensitive assets such as property and long-duration equities. Because policy acts with a lag, the full effect on household budgets and corporate margins typically emerges over subsequent quarters rather than immediately.

What to watch from here: the central bank's accompanying commentary on inflation and the labour market, which shapes