CANBERRA, Australia — Australia’s central financial institution on Tuesday lifted its benchmark rate of interest for a ninth consecutive time to three.35% because it battles inflation that rose to 7.8% within the newest quarter.

The Reserve Financial institution of Australia’s determination to extend its money fee by 0.25 of a foundation level was extensively anticipated after the annual inflation fee for the December quarter was the very best since 1990.

“Excessive inflation makes life tough for individuals and damages the functioning of the economic system,” Reserve Financial institution Governor Philip Lowe stated in a press release.

“And if excessive inflation had been to develop into entrenched in individuals’s expectations, it will be very expensive to scale back later,” he added.

The board has been elevating rates of interest to attempt to carry inflation throughout the financial institution’s goal band of two% to and three%, whereas hoping to keep away from recession, he stated.

“However the path to reaching a comfortable touchdown stays a slender one,” Lowe stated.