FOREX TradingCharts.com

Financial News: Australia Hikes Rates By 50 Bps As Expected

Australia Hikes Rates By 50 Bps As Expected

09/06/2022 - 01:02:00 (RTTNews)

(RTTNews) - The Reserve Bank of Australia raised its key interest rates by a half-percentage point on Tuesday to bring inflation back to the target and create a more sustainable balance of demand and supply in the Australian economy.

The policy board of the RBA, headed by Governor Philip Lowe, decided to lift the cash rate target by 50 basis points to 2.35 percent, the highest since late 2014.

Lowe said the board expects to increase interest rates further over the months ahead, but it is not on a pre-set path.

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, Lowe added.

The central bank also increased the interest rate on Exchange Settlement balances by 50 basis points to 2.25 percent.

The board forecast inflation to be around 7.75 percent over 2022, a little above 4 percent over 2023 and around 3 percent over 2024.

At the same time, the domestic economy is continuing to grow solidly and national income is being boosted by a record level of the terms of trade, the board observed.

It is possible that the Bank will only slow the pace of tightening if the third quarter inflation figures due at end-October show a moderation in price pressures, Marcel Thieliant, an economist at Capital Economics, said. Nonetheless, the RBA will ultimately lift the cash rate to 3.6 percent.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2022 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Norway Industrial Production Grows For Second Month (08 min(s), 42 sec(s) ago)
(RTTNews) - Norway's industrial production increased for the second straight month in August, ...Full Story»

UK Job Placement Growth At 19-Month Low: Report On Jobs (32 min(s), 42 sec(s) ago)
(RTTNews) - UK job placements expanded at the weakest pace in over a year-and-a-half in September ...Full Story»

German Industrial Production Shrinks; Retail Sales Fall (48 min(s), 42 sec(s) ago)
(RTTNews) - Germany's industrial production declined more than expected in August as raw mater ...Full Story»

UK House Price Inflation At 8-Month Low : Halifax (01 hr(s), 03 min(s), 42 sec(s) ago)
(RTTNews) - UK house price inflation eased for the third straight month in September to the lowest ...Full Story»

Australia's Financial System Remains Resilient: RBA (02 hr(s), 03 min(s), 42 sec(s) ago)
(RTTNews) - Australia's financial system remained resilient and well positioned to support the ...Full Story»

Japan Leading Index Rises In August (02 hr(s), 12 min(s), 42 sec(s) ago)
(RTTNews) - Japan's leading index improved for the first time in four months in August, prelim ...Full Story»

European Economics Preview: Germany Industrial Output Data Due (04 hr(s), 31 min(s), 42 sec(s) ago)
(RTTNews) - Industrial production and retail sales from Germany and house prices from the UK are d ...Full Story»

Japan Household Spending Rises 5.1% On Year In August (58 min(s), 18 sec(s) ago)
(RTTNews) - The average of household spending in Japan was up 5.1 percent on year in August, the M ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Norway Industrial Production Grows For Second Month

10/07/2022 - 04:30 AM (RTTNews)
(RTTNews) - Norway's industrial production increased for the second straight month in August, ...Full Story>>

UK Job Placement Growth At 19-Month Low: Report On Jobs

10/07/2022 - 04:06 AM (RTTNews)
(RTTNews) - UK job placements expanded at the weakest pace in over a year-and-a-half in September ...Full Story>>

German Industrial Production Shrinks; Retail Sales Fall

10/07/2022 - 03:50 AM (RTTNews)
(RTTNews) - Germany's industrial production declined more than expected in August as raw mater ...Full Story>>

UK House Price Inflation At 8-Month Low : Halifax

10/07/2022 - 03:35 AM (RTTNews)
(RTTNews) - UK house price inflation eased for the third straight month in September to the lowest ...Full Story>>

Australia's Financial System Remains Resilient: RBA

10/07/2022 - 02:35 AM (RTTNews)
(RTTNews) - Australia's financial system remained resilient and well positioned to support the ...Full Story>>

Do not sell my personal information

Copyright © 2022. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.