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 2.35 per cent. It also increased the interest rate on Exchange Settlement balances by 50 basis points to 2.25 per cent.

• The outlook for global economic growth has deteriorated due to pressures on real incomes from high inflation, the tightening of monetary policy in most countries, Russia’s invasion of Ukraine, and the COVID containment measures and other policy challenges in China.
• Inflation in Australia is the highest it has been since the early 1990s and is expected to increase further over the months ahead.
• Wages growth has picked up from the low rates of recent years and there are some pockets where labour costs are increasing briskly.

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 : 06 Sep 2022