The Reserve Bank of Australia on Tuesday decided to raise its key interest rate by half a percentage point, in line with market expectations, citing a resilient economy and rising inflation.
The Monetary Policy Board of the Reserve Bank of Australia, headed by Governor Philip Low, announced the decision to increase interest rates by 50 basis points to 1.35%, compared to 0.85% before the increase.
This is the third rate increase in a row and the second following it was raised by 50 basis points last month.
The central bank governor said that the economy’s resilience and the high rate of inflation mean that there is no longer a need for the exceptional economic support measures that were approved during the emerging Corona virus pandemic.
The Bank expects to take further steps towards normalizing monetary policy conditions in Australia in the coming months.
Lu said: The timing and size of the next rate hike will be determined on the basis of the expected economic data and the Monetary Policy Board’s assessment of inflation expectations and the state of the labor market.
