Reserve Bank of Australia lifts rate to 4.85 per cent

The Reserve Bank of Australia raised its benchmark interest rate from 4.60 per cent to 4.85 per cent, the highest level in 18 years and the fifth increase this year. Governor Michele Bullock said the bank's new forecast shows economic growth slowing markedly. Six members of the monetary policy board backed the rise, while three voted to hold rates unchanged, according to the Australian Broadcasting Corporation. The bank's statement suggests it may pause further increases over the summer to assess their impact.