Reserve Bank of Australia raises its cash rate target to 4.85%

The Reserve Bank of Australia's board "decided to increase the cash rate target by 25 basis points to 4.85 per cent." Three of nine members voted to keep it "unchanged at 4.60 per cent." It said inflation "is now forecast to remain elevated through much of 2027", partly reflecting "higher fuel and other commodity prices affected by the conflict in the Middle East."