Australia’s central bank, the Reserve Bank of Australia (RBA), has raised its key interest rate by 25 basis points to 4.6 percent, marking the highest level in 15 years.

The RBA said rising fuel and energy prices, disruptions to global oil supplies and escalating tensions in the Middle East are increasing inflationary pressures and pushing up the cost of goods and services.

The central bank also pointed to stronger-than-expected economic growth and inflation in Australia. It noted that strong investment related to artificial intelligence and rising demand are contributing to higher prices for technology-related goods globally.

Meanwhile, Australia’s housing market has slowed, adding to economic uncertainty. Housing prices have declined in most state capitals, while new housing lending has also fallen significantly.

The RBA said it will continue monitoring energy prices, global developments and domestic economic conditions as it assesses the outlook for inflation and future monetary policy.