The Reserve Bank of Australia resumed interest rate hikes on Tuesday, believing that it is no longer possible to wait any longer in the face of rising energy costs and domestic demand; these factors may increase inflationary pressure. The Board of Governors of the Reserve Bank of Australia raised the cash rate target from 4.35% to 4.6%, to the highest level in nearly 15 years, as generally expected by the market. A statement said that the nine-member policy committee voted unanimously to raise interest rates for the fourth time this year. Governor Michele Bullock will hold a press conference in Sydney at 15:30. The council said in a statement: “Since the last meeting, some of the upward risks of inflation have come true. Global oil supply was further disrupted, and recent data also showed that Australia's economic growth and inflation were higher than expected.” Furthermore, the statement also stated that the Federal Reserve will raise interest rates further if necessary. The yield on Australian 3-year treasury bonds narrowed after the central bank raised interest rates. The Australian dollar erased the decline against the US dollar, and the S&P Australian Securities 200 Index erased gains and fell 0.1%. The Reserve Bank of Australia joined the ranks of Europe, the US, and the Bank of Japan, and raised interest rates one after another this month to cope with the price pressure fueled by the US-Iran war. With little sign of a resolution to this conflict in the short term, and the overall rise in energy prices in the global economy, central banks are compelled to act.

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