SYDNEY — The Reserve Bank of Australia raised official interest rates a tenth consecutive time Tuesday, saying inflation remains too high, but its guidance to money markets appeared less hawkish, with the central bank saying inflation may have peaked and wages growth is contained. The increase takes the official cash rate to 3.60%, its highest level in over a decade, from 3.35% in February, and up from 0.10% in May last year.
“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,” RBA Governor Philip Lowe said in a statement. “The monthly CPI [consumer price index] indicator suggests that inflation has peaked in Australia,” Lowe added. Overall, the policy guidance this month is more benign than in February, when the RBA warned that “further increases” would likely be needed over coming months. Lowe also highlighted slowing gross domestic product growth and that wages growth remains largely subdued. The dovish shift in tone from the RBA follows a recent glut of data showing that highe …