Mumbai, Sept. 29 -- 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.
Published by HT Digital Content Services with permission from Capital Market....