Inflation Points To Australian Interest Rate Hike

ROD McGUIRK

CANBERRA, Australia (AP) — Australian interest rates are expected to rise again next week with new figures on Wednesday showing inflation was higher than expected for the September quarter.

Australia became the first major economy to boost rates since the onset of the global economic crisis when the central bank board increased its cash rate in a surprise move earlier this month. The board's next rate meeting is on Tuesday.

At its Oct. 6 meeting, the Reserve Bank of Australia boosted the official cash rate by a quarter percentage point to 3.25 from a 50-year low.

Economists predicted another quarter percentage point hike next week after the Australian Bureau of Statistics on Wednesday showed inflation had risen 1 percent for the three months through September for an annual rate of 1.3 percent.

Prices rose with big hikes in electricity charges, oil and household water.

Economists had forecast a 0.9 percent rise in the quarter, for an annual pace of 1.2 percent.