RBA raises its cash rate by 25bp

Reserve Bank of Australia monetary policy decision for October 2022, a 25bp rate hike, taking the cash rate to 2.60%

A 50bp rate hike was the consensus, though not unanimous by any means

• Rate rise will help achieve more sustainable balance of demand and supply
• Board is committed to returning inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to the 2–3 per cent range over time.
• Cash rate has been increased substantially in a short period of time.
• Size and timing of future rate rises will be determined by the data and outlook for inflation and the labour market
• Medium-term inflation expectations remain well anchored, and it is important that this remains the case
• Board expects to increase interest rates further over the period ahead
• Given the tight labour market and the upstream price pressures, the board will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms in the period ahead.
• Board remains resolute in its determination to return inflation to target

Full text:

Statement by Philip Lowe, Governor: Monetary Policy Decision

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