Australia’s central bank raises interest rate to 3.85% after 3 cuts

MELBOURNE, Australia (AP) — Australia’s central bank lifted its benchmark interest rate Tuesday by a quarter percentage point to 3.85%, after three rate cuts last year and as inflation surges.

The Reserve Bank of Australia has boosted its cash rate for the first time since November 2023, when the rate rose from 4.10% to 4.35%.

The rate hike was widely expected after government data last week showed that inflation had run away to 3.8% for the 12 months through December. The annual...