textile australian flag with crumples

Bank of Australia Raises Interest Rates by 0.25%, Signals Another Hike to Tackle Inflation

The Reserve Bank of Australia (RBA) raised its policy rate by 0.25% to 3.35% on February 7th, marking the ninth consecutive monthly hike and the longest hike on record.

In a statement issued after the meeting, the RBA Board emphasized its focus on bringing inflation back to its target range of 2-3%, as high inflation has impacted the lives of citizens and damaged the country’s economic mechanism.

The RBA aims to balance the task of supporting the economy while controlling inflation, but it sees a lower chance of a gradual slowdown in the Australian economy. The Board signaled the need for further rate hikes in the coming months to build confidence that inflation will return to its target.

The RBA Committee will assess various factors, including the global economic situation, household spending trends, inflation trends, and the labor market, before determining how much further the interest rates will be increased.

Leave a Reply

%d bloggers like this: