THE WALL STREET JOURNAL

SYDNEY—The Reserve Bank of Australia said it would stop using yield caps and abandoned a view that its benchmark interest rate won’t rise until 2024, joining other central banks that are tightening policy as inflation risks mount.

The RBA’s policy decision follows a hawkish shift by the Bank of Canada, which last week ended its government-bond-purchase program and moved up the time frame for when it might first raise its benchmark interest rate from its current near-zero level. The Federal Reserve is this week likely to begin winding down its $120-billion-a-month asset-buying program with an eye toward ending those purchases by next June.

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