Australia lifts key interest rate, flags further rises

AUSTRALIA’S central bank hiked interest rates to an 11-year high today and warned that further rises may be on the horizon to get surging prices under control.

The Reserve Bank of Australia lifted the key rate 25 basis points to 4.1%, its highest level since May 2012, with governor Philip Lowe saying inflation had “passed its peak” but was still stubbornly high.