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Australia central bank raises rates by 25 bps to 4.1%

Tan KW
Publish date: Tue, 06 Jun 2023, 02:23 PM
Tan KW
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SYDNEY: Australia's central bank raised interest rates by a quarter-point on Tuesday, taking the cash rate to an 11-year high of 4.1%, saying the hike would provide greater confidence that inflation would return to target within a reasonable timeframe.

Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) said some further tightening of monetary policy may be required to ensure that inflation returns to target.

Markets had been leaning towards a pause, although they had price in a sizeable 40% chance that the RBA would hike by 25 basis points. Many economists saw the June meeting outcome as a line-ball call after the central bank had surprised by tightening again in May following a brief one month pause.

 - Reuters

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