The Reserve Bank of Australia (RBA) increased its interest rate by 25 basis points, in line with market expectations.
In the statement made after the meeting of the RBA, which started yesterday and ended today, it was stated that the interest rate increased from 2.60 percent to 2.85%. Thus, the policy rate in the country has risen to the highest level since 2013.
The RBA has raised interest rates by 275 basis points in its last seven meetings. The RBA stated that a 25 basis point rate hike would help the inflation target, which is in the 2-3 percent range. However, he pointed out that more rate hikes will likely be needed in the coming period.
The bank will closely monitor the global economy, household expenditures, wage, and price-setting behavior. Given the incoming data, the size and timing of future rate hikes will continue to be determined by the Board’s assessment of inflation and the labor market outlook. It was said.
