In November 2023, the annual inflation rate in Australia was recorded at 5.4%. Commenting on the monetary policy decision, the Governor of the Reserve Bank of Australia (RBA), Michele Bullock, noted: "The Board judged that a further increase in the cash rate to 4.35% was warranted to ensure that inflation returns to the target range of 2–3% within a reasonable timeframe."
With reference to the data above and your knowledge of economics, analyse the relationship between inflation and interest rates for a country such as Australia.
