(MENAFN) As it fights against inflation, which increased to 7.8% in the most recent quarter, Australia's central bank on Tuesday increased its benchmark interest rate for a ninth straight time to 3.35%.
After the annual inflation rate for the December quarter reached its highest level since 1990, it was generally expected that the Reserve Bank of Australia would decide to raise its cash rate by 0.25 basis points.
According to Reserve Bank Governor Philip Lowe, "high inflation makes life unpleasant for individuals and affects the operation of the economy."
"And it would be very expensive to lower later," he said, "if high inflation were to get established in people's expectations."
In an effort to keep inflation within the bank's goal range of 2% to 3% while attempting to avert recession, the board has been hiking interest rates, he added.
However, Lowe added, "the road to making a gentle landing remains a limited one.
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