The Central Bank of Australia (RBA) decided to raise the benchmark interest rate by 0.5 percentage point, from 0.85% to 1.35%, at its monetary policy meeting on Tuesday (5th). ).
In the last interest rate hike, the monetary authority had raised the rate by 50 basis points, from 0.35% to 0.85%.
The RBA expects to take further steps in the process of normalizing monetary conditions in Australia in the coming months.
The size and timing of future interest rate hikes will be guided by the data received and the Board’s assessment of the outlook for inflation and the labor market, RBA President Philip Low said in a statement.
The monetary authority assesses that global inflation is high, and has been driven by Covid-19-related disruptions in supply chains, the war in Ukraine and strong demand that is putting pressure on productive capacity.
“Global monetary policy is responding to this higher inflation, although it will still be some time before inflation returns to target in most countries,” Low pointed out.
The central bank expects inflation to peak in Australia next year, and to drop back to the target range in 2023, to between 2 and 3%.
“Today’s interest rate hike is another step in withdrawing the extraordinary monetary support that was put in place to help the Australian economy during the pandemic,” Low said.
Source: CNN Brasil
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