Australia Becomes First Major Economy to Hike Rates in 2026

Australia’s central bank raised its key interest rate Tuesday, the first major monetary authority to hike this year, after judging inflation pressures were persistent enough to warrant renewed restraint.

The Reserve Bank’s board increased its cash rate to 3.85% from 3.6% in a unanimous decision, partially reversing one of the shortest and shallowest easing cycles last year.