Australia's central bank lifts rates to 18-year high of 4.85%

Australia's ​central bank raised ​its cash rate ‌to an ​18-year high of 4.85% on Tuesday in its ‌fifth hike of the year, though the vote was closer than many expected with ‌three of the nine board members ‌wanting to stay on hold. Wrapping up its November policy meeting, the Reserve Bank of Australia board ⁠lifted ​rates ⁠by 25 basis points, bringing the tightening this ⁠year to a steep 125 basis points. ​The board judged further tightening had been ⁠needed to bring inflation down.

Investors had wagered heavily ⁠on ​an increase given policy makers had warned of upside risks to core ⁠inflation, which was running at 3.7% and well ⁠above ⁠the RBA's target range of 2% to 3%.