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Australia Raises Interest Rate to 18-Year High
The Reserve Bank of Australia raised its benchmark interest rate to 4.85% on Tuesday, citing rising technology costs from AI investment and higher energy prices as the main drivers of inflation. The bank pushed back its forecast for inflation to return to the top of its 2% to 3% target range until late 2027, around three quarters later than previously expected. The move contrasts with the US Federal Reserve's decision to hold rates last week, despite warnings of AI investment adding to price pressures.