The Reserve Bank of Australia (RBA) has finally lifted the cash rate, ending the era of ultra-low interest rates.
The central bank made a 25 basis point increase to the cash rate target, bringing it to 0.35%.
It marks the first time in 11 years there has been a hike in the official cash rate. The last time there was a cash rate increase was in November 2010.
Today’s decision comes after last week’s surprise inflation result – according to the Australian Bureau of Statistics (ABS), the Consumer Price Index (CPI) rose 2.1% in the March 2022 quarter and 5.1% on an annual basis.
In his statement, RBA governor Dr Philip Lowe confirmed there will be more interest rate rises ahead.
“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time. This will require a further lift in interest rates over the period ahead,” Dr Lowe said.
“The Board will continue to closely monitor the incoming information and evolving balance of risks as it determines the timing and extent of future interest rate increases.”
More to come…
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