Australia increases interest rate by 25 basis points

By Gokhan Ergocun

ISTANBUL (AA) - Australia's Central Bank has increased its policy interest rate by 25 basis points to 3.6% on Tuesday.

The bank has also increased the interest rate on exchange settlement balances by 25 basis points to 3.5%, it announced.

The bank underlined that the global inflation rates are still very high and it will take some more time to get back to target levels.

"The Board is seeking to return inflation to the 2–3 per cent target range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.

"The Board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary," the bank said in a statement.