At its meeting today, the Board of the Reserve Bank of Australia have decided to increase the cash rate target by 50 basis points to 1.85 per cent. It also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.75 per cent.
- The Board places a high priority on the return of inflation to the 2–3 per cent range over time, while keeping the economy on an even keel.
- Inflation is expected to peak later this year and then decline back towards the 2–3 per cent range.
- Today’s increase in interest rates is a further step in the normalisation of monetary conditions in Australia.
The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.
To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.
Published : 02 Aug 2022