5 Reasons Why the Reserve Bank Raised Interest Rates for the 5th Time This Year
Governor Michele Bullock says accepting 'some pain now' will prevent greater economic pain later.
The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.85 percent, the highest since 2008. Governor Michele Bullock stated the increase is necessary to combat inflation, which remains above the RBA’s target of 2-3 percent. Forecasts suggest inflation will stay elevated for an extended period.
- The RBA lifted the cash rate by 25 basis points to 4.85 percent.
- This marks the highest cash rate level since 2008.
- Six RBA board members voted for the rate rise, while three preferred to maintain the previous rate.
- Governor Michele Bullock cited inflation as being ‘too high’ and forecasted to remain ‘higher for longer’.
- Inflation was recorded at 4.3 percent in the year to September, exceeding the RBA’s 2-3 percent target.
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