Australia’s central bank increased its benchmark interest rate for the second time in four weeks and said there are signs the highest borrowing costs in 12 years are prompting consumers and businesses to temper spending, reports Bloomberg. Reserve Bank of Australia governor Glenn Stevens and his board raised the overnight cash rate target by a quarter point to 7.25% in Sydney on Tuesday, after adjustments in February, November and August to stem the fastest inflation since 1991.

This entry was posted by Gwen Robinson on Tuesday, March 4th, 2008 at 5:05 and is filed under Capital markets. Edit this entry.