Australia raises cash rate to 4.85%, an 18-year high

September’s consumer price index rose 4.3%, up from 4% in August. The quarter-point hike brought Australia’s cash rate to 4.85%. The Reserve Bank now expects inflation to return to its 2%-3% target range in late 2027, three quarters later than previously forecast. It cited higher fuel and commodity prices and said AI-related investment was driving rapid price growth in technology-related goods.