Australia hikes interest rates

Australia’s central bank raised its interest rate to a 14-month high of 4.25 per cent yesterday, flagging further moves ahead as the resource-rich nation rides a tide of Asian demand. The Reserve Bank of Australia hiked the rate by 25 basis points, its fifth increase in seven months. “With growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average,” the bank said.