02.08.2022 06:48:45

Australia Central Bank Lifts Rate By 50 Bps

(RTTNews) - Australia's central bank raised its key interest rates again by 50 basis points in order to bring inflation back to the 2-3 percent target range.

The policy board of the Reserve Bank of Australia, headed by Governor Philip Lowe, decided to lift the cash rate target by 50 basis points to 1.85 percent.

This was the fourth consecutive rate hike. The latest outcome of the meeting came in line with economists' expectations.

The bank also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.75 percent.

Today's increase in interest rates is a further step in the normalisation of monetary conditions in Australia, Lowe said.

The Board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path.

The bank said the size and timing of future interest rate increases will be guided by the incoming data and the Board's assessment of the outlook for inflation and the labor market.