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Australia Central Bank Raises Rates to 18-Year High

Australias central bank raised its cash rate to an 18-year high of 4.85 percent in a split vote. The narrow decision suggests policymakers may soon pause their tightening campaign as growth slows.

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FILE PHOTO: FILE PHOTO: A worker is reflected in a wall of the Reserve Bank of Australia (RBA) head office in central Sydney, Australia, March 1, 2016. REUTERS/David Gray/File Photo/File Photo

Australia lifted its cash rate by 25 basis points to 4.85% on Tuesday, reaching an 18-year high in its fifth hike of the year. The move followed a surprisingly narrow 6-3 vote among policymakers. Markets reacted by pushing AUD/USD down 0.3% to $0.6977 as bets grew for a pause next month.