Reserve Bank of Australia hikes interest rates by 25 basis points to 3.85 per cent
Surprise mortgage pain for millions of Australians as Reserve Bank RAISES rates by 25 basis points – despite financial market forecasts, Philip Lowe would cut cash rates
- The Reserve Bank has raised interest rates by 25 basis points
- The cash rate has risen to a new 11-year high of 3.85 percent
The Reserve Bank of Australia surprised the experts by raising interest rates by 0.25 percentage point, pushing cash rates to an 11-year high of 3.85 percent.
The latest hike after the April break marks the 11th rate hike in the past year.
While inflation moderated to 7 percent in March, from a December high of 7.8 percent in 32 years, RBA Governor Philip Lowe said it was too high, well above the target of 2 to 3 percent.
“Inflation in Australia is past its peak but is still too high at 7% and will take some time to get back into target range,” he said.
The Reserve Bank of Australia surprised the experts by raising interest rates by 0.25 percentage point, bringing the spot rate to 3.85 percent