The central bank raises interest rates by half a point to 1.85%
The Reserve Bank of Australia (RBA) ended its meeting which ended this morning Raising the benchmark by 50 basis points to 1.85%This brings the total increase since May to 175 points. This is the most severe tightening since the early 1990s.
The governor explained that “the council intends to take further steps in the process of normalizing monetary policy in the coming months, but there is no specific path.” Philip Lowegiving markets a cautious indication, as he previously said several times that he wants to raise interest rates to a neutral level of 2.5%.
The Australian dollar fell in response, It fell 0.6% to $0.6977 as three-year notes regained some ground, including expectations for new interest rates.
The Reserve Bank of Australia also has Updated inflation forecastswhich should reach a Peak 7.75% Compared to the 7% mentioned above and 6.1% in the previous quarter. Inflation will not return to the 2-3% target range until at least 2024. Economic growth forecast It has been to 3.25% in 2022 And at 1.75% in each of the following years, what was previously expected to grow by 4.2% in 2022 and 2% in 2023.
(Teleborsa) 08-02-2022 10:56
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