RBA tightens policy, citing higher-than-expected inflation
Australia’s first rate hike since late 2023 had been expected by economists
The Reserve Bank of Australia increased its policy rate by 25 basis points today (February 3), citing higher-than-expected inflation.
The decision to increase the cash rate target to 3.85% was made unanimously by the RBA’s board and marked its first hike since late 2023. According to a statement by the central bank following the decision, inflation had picked up “materially” in the second half of last year.
The bank said that although this was likely to reflect temporary factors, it was “evident
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