Australia Hikes Official Interest Rate for First Time in Over a Decade

An ibis bird perches next to the Reserve Bank of Australia headquarters in central Sydney, Australia, on Feb. 6, 2018. Daniel Munoz/Reuters

The Reserve Bank of Australia (RBA) has raised the cash rate for the first time in over a decade, up 0.25 percentage points to 0.35 percent.

The decision came earlier than what was initially indicated in response to March quarter inflation figures, released on April 27, that showed annual inflation had surged to 5.1 percent, the highest level since the introduction of the goods and services tax.