At its meeting today, the Board of the Reserve Bank of Australia have decided to increase the cash rate target by 25 basis points to 35 basis points.

• The Board judged that now was the right time to begin withdrawing some of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic.
• Inflation has picked up significantly and by more than expected, although it remains lower than in most other advanced economies.
• Given both the progress towards full employment and the evidence on prices and wages, some withdrawal of the extraordinary monetary support provided through the pandemic is appropriate.

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 : 03 May 2022