Reserve Bank of Australia with their 13th cash rate hike since they began this hiking cycle in May of 2022.

Headlines via Reuters:

  • Board remains resolute in its determination to return inflation to target
  • CPI inflation is now expected to be around 3½ per cent by the end of 2024 and at the top of the target range of 2 to 3 per cent by the end of 2025.
  • Board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable timeframe.
  • Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend upon the data and the evolving assessment of risks
  • Still significant uncertainties around the outlook
  • Services price inflation has been surprisingly persistent overseas and the same could occur in Australia
  • To date, medium-term inflation expectations have been consistent with the inflation target and it is important that this remains the case
  • High inflation is weighing on people’s real incomes and household consumption growth is weak, as is dwelling investment
  • Wages growth has picked up over the past year but is still consistent with the inflation target, provided that productivity growth picks up
  • Weight of information suggests that the risk of inflation remaining higher for longer has increased.

Bolding above is mine. The RBA doesn't know if this is the peak for rates and have allowed the option of more if needed.

Given how widely expected this cash rate rise was its no surprise to see AUD/USD a little lower after the announcement.

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