Australian central bank leaves its benchmark cash rate at 4.1% but warns there

CANBERRA, Australia (AP) — Australia’s central bank has left its benchmark interest rate at 4.1%  after inflation fell to 5.6% in May from 6.5% a month earlier. The Reserve Bank has lifted the cash rate 12 times since May 2022 to reduce inflation to a target range of 2% to 3%. Bank governor Philip Lowe said Tuesday there might be a need for further rises. Higher interest rates raise the cost of borrowing for both businesses and consumers, slowing economic activity and helping to relieve price pressures that have flared after the slowdowns of the COVID-19 pandemic. Globally, inflation has abated somewhat, allowing the U.S. Federal Reserve and other central banks to also slow or halt rate increases.