{"text":[[{"start":7.82,"text":"Australia’s central bank has raised interest rates to the highest level in 15 years as the war in the Middle East fuels inflation and adds to economic uncertainty."}],[{"start":17.347,"text":"The Reserve Bank of Australia on Tuesday increased its main borrowing rate by 0.25 percentage points to 4.6 per cent, its fourth rate rise this year, as higher fuel prices fed into costs of goods and services."}],[{"start":31.85,"text":"“Inflation is still too high and the board judged that, in light of recent developments, a further tightening in financial conditions is warranted to support a return of inflation to target in a reasonable period,” the RBA said in a statement."}],[{"start":45.439,"text":"The move brought rates to the highest level since October 2011, when the European banking crisis weighed on global economic growth, and the bank said it would raise them further “if needed” to ensure that inflation does not become embedded."}],[{"start":58.529,"text":"Australia was one of the first countries to start raising interest rates in 2022 after the Covid pandemic, and it began a tightening cycle in February that economists expect will continue into next year."}],[{"start":71.095,"text":"RBA governor Michele Bullock said she would not comment on whether more rate rises were likely, saying the bank would monitor the effects of its policy. Fresh inflation data is due to be released on Wednesday."}],[{"start":82.92,"text":"The Australian dollar weakened 0.5 per cent against the US dollar. The S&P/ASX 200 stock index was flat, while yields on the 10-year Australian government bond fell 0.04 percentage points to 5.38 per cent."}],[{"start":96.782,"text":"Bullock said several factors, including excess demand and flat productivity growth, had been driving inflation but the US and Israeli war with Iran had added a further spur in the form of higher fuel, fertiliser and transport costs."}],[{"start":110.882,"text":"“The Middle East conflict has made people poorer,” she said. “That’s a fact.”"}],[{"start":116.8,"text":"Inflation has remained persistently above the RBA’s target band of 2-3 per cent since August, with consumer prices rising 3.5 per cent in the year to July. Housing costs were up 5 per cent and food and beverage prices rose 3.2 per cent, according to the Australian Bureau of Statistics."}],[{"start":133.756,"text":"“People are feeling, quite rightly, very annoyed,” Bullock said, with cost of living increases and low real wage growth."}],[{"start":144.16,"text":"Australian housing prices, meanwhile, have been declining as rising interest rates and a reduction of tax breaks on investment properties have combined to depress demand."}],[{"start":151.055,"text":"“Rising mortgage rates have progressively reduced borrowing capacity and weakened housing demand, while consumer sentiment remains deeply pessimistic,” said Cotality, a property research company."}],[{"start":163.633,"text":"“Based on median household income, the cumulative impact of the four rate hikes since February has reduced borrowing capacity by almost A$90,000 (US$63,000), equivalent to around a 9 per cent decline in purchasing power.”"}],[{"start":180.32,"text":"Jim Chalmers, Australia’s treasurer, said prior to the RBA meeting that Australians needed to brace themselves for “difficult months” ahead as he defended the government’s handling of the economy against widespread criticism that high public spending had fuelled inflation."}],[{"start":196.92,"text":"Emeline Gaske, national secretary of the Australian Services Union, called the bank’s move “heartlessness in the extreme”."}],[{"start":201.64,"text":"“You can’t just keep slugging workers with rate rises in the name of inflation and then just talk about unemployment as collateral damage,” she said."}],[{"start":212.642,"text":"Bullock said that the RBA was “alert to” but not “alarmed” by the prospect of higher borrowing costs as bond yields rise, saying that liquidity had not proved to be an issue."}],[{"start":223.88,"text":"Additional reporting by William Sandlund in Hong Kong"}],[{"start":228.72,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790674091_6516.mp3"}