RBA Raises Cash Rate to 4.85% as Australian Dollar Drops to Two-Week Low

The Reserve Bank of Australia raised its cash rate target by 25 basis points to an 18-year high of 4.85% in a 6-3 split vote to combat stubborn inflation. Despite the monetary tightening, which marked the central bank's fifth increase of the year, the Australian dollar weakened below $0.70 to a two-week low. Meanwhile, local equities remained resilient, with Australia's S&P/ASX 200 advancing between 0.2% and 0.4% amid broader declines across Asian stock markets.