Australia raises key interest rate to 15-year high

Australia's central bank raised its cash rate to a 15-year high of 4.6 percent on Tuesday in its fourth hike of the year, saying inflation was too high and it was prepared to hike further if needed. Wrapping up its September policy meeting, the Reserve Bank of Australia board voted unanimously to lift its key interest rate by 25 basis points, bringing the tightening this year to a full percentage point. The board said some of the upside risks to inflation were materialising with energy costs high and productivity weak at home. Investors had wagered heavily on an increase given core inflation was running at 3.6 percent, well above the central bank's target range of two percent to three percent, and markets are priced for at least one more hike ahead. (Reuters) Edited by Tony Sabine