RBA Resumes Rate Hikes, Lifts Hurdle to Further Tightening
- Move driven by rising risks inflation stays higher for longer
- Currency declines as central bank tempers its tightening bias
WATCH: The RBA raised its key interest rate as expected to 4.35% in the first hike since Bullock become the governor. Paul Allen reports.
Source: BloombergThis article is for subscribers only.
Australia’s central bank resumed raising interest rates on Tuesday in a widely anticipated move, while signaling a higher hurdle to further policy tightening that pushed the local currency lower.
The Reserve Bank increased its cash rate to a 12-year high of 4.35% and revised up its inflation forecast slightly to 3.5% by end-2024. It also edged down the predicted peak in unemployment to 4.25%, underscoring the resilience in the broader economy to the central bank’s tightening so far.