Reserve Bank of Australia joins 50bp club

Australian central bank continues post-pandemic tightening with second, larger hike

Reserve Bank of Australia
Photo: Alex Towle

The Reserve Bank of Australia ordered a 50 basis point increase to its cash rate on June 7, to 0.85%. The move is the second hike in a row and the largest in 22 years, exceeding expectations in market surveys.

The RBA’s decision aligns it with other advanced economy central banks that have adopted larger, 50bp rate hikes in recent weeks. These include the Federal Reserve, the Bank of Canada and the Reserve Bank of New Zealand.

In his press statement, RBA governor Philip Lowe described the

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