At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 2.60 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 2.50 per cent.

• A further increase in inflation is expected over the months ahead, before inflation then declines back towards the 2–3 per cent range.
• The Australian economy is continuing to grow solidly and national income is being boosted by a record level of the terms of trade.
• Wages growth is continuing to pick up from the low rates of recent years, although it remains lower than in other advanced economies where inflation is higher.

The Board is committed to returning inflation to the 2–3 per cent range over time. Today’s increase in interest rates will help achieve this goal and further increases are likely to be required over the period ahead.

To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.

Published : 04 Oct 2022