The Reserve Bank of Australia (RBA) revealed on Tuesday it opted to hike rates in March, adjusting the setting by 0.25%, compared to its previous level.
The central bank's targets for the cash rate and the interest rate on Exchange Settlement balances will be increased, standing at 3.60% and 3.50%, respectively.
"The outlook for the global economy remains subdued, with below average growth expected this year and next," RBA Governor Philip Lowe said. "The Board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary."
