Australian Reserve Bank Makes Another Modest Hike, Lifts Cash Rate to 2.85 percent
The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 2.85 percent, its seventh consecutive interest rate hike.
Despite the most recent data revealing inflation jumped to 7.3 percent in the September quarter, the highest level since 1990, the RBA has chosen a much less aggressive interest rate hike path compared to other countries.
RBA Governor Philip Lowe said inflation was expected to increase further and peak at eight percent by the end of the year—around 0.25 percent higher than previous forecasts—before declining in 2023.
“The bank’s central forecast is for CPI inflation to be around 4.75 percent over 2023 and a little above 3 percent over 2024,” he said in the monetary policy decision statement….