On Tuesday, Australia’s central bank raised interest rates by a quarter of a percentage point to 3.85% despite a halt in its climb last month and new evidence of slowing inflation.
The increase brings the cash rate to 3.85%, the highest rate in Australia since April 2012, the Associated Press reported.
The RBA meeting on April 4 was the first in a year to leave interest rates on hold to allow time for the bank’s board to monitor the effects of the latest increases. While most economists expected the liquidity rate to remain steady at 3.6% at the Bank’s meeting in May.
Last week, the Australian Bureau of Statistics reported that inflation in the March quarter slowed to 7% from 7.8% in December.
But central bank governor Philip Lowe said inflation remained well outside the bank’s target range of 2% to 3%. target”.
He pointed out that “while recent data showed a welcome decline in inflation, the central expectations remain that it will take two years before inflation returns to the top of the target range,” noting that “the inflation rate is expected to reach 4.5% in 2023 and 3% in mid-2020.” 2025″.
This article was originally published by RT.
