Economic Buzz: RBA raises rates to 15-year high as inflation pressures persist

Australia?s central bank raised its policy rate to 4.6%, the highest level in 15 years, citing stronger-than-expected inflation, higher global energy prices and persistent domestic capacity constraints. Inflation stood at 3.5% in July after reaching 4.6% in March, while August inflation data is due on Wednesday. The economy grew 2.1% in the second quarter, slowing from 2.5% in the first quarter, highlighting the growth pressures from tighter policy. The RBA said further tightening may be needed to prevent inflation from becoming embedded and return it sustainably to target.

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