RBA Raises Rates to 4.35% as Inflation Risks Persist
The Reserve Bank of Australia raised the official cash rate by 25 basis points to 4.35%, delivering a third consecutive increase as it seeks to contain stubborn inflation. The central bank said inflation is expected to remain above target for an extended period, with upside risks still present.
In its Statement on Monetary Policy, the RBA raised its inflation forecasts while lowering its outlook for growth and employment in the coming years. It said the Gulf conflict is a key shock worsening both inflation and growth expectations, and that its forecasts assume additional rate increases alongside a gradual decline in oil prices over the medium term.
From the sources (13 posts)
@cnbcAustralia central bank raises rates to highest since 2024 as inflation stays elevated
@firstsquawkReserve Bank of Australia: Statement on Monetary Policy raises inflation forecasts while lowering growth and employment outlook for the coming years.
@firstsquawkReserve Bank of Australia: The Gulf conflict is identified as a key shock that is worsening both inflation and growth expectations.
@firstsquawkReserve Bank of Australia: CPI inflation is projected to peak at 4.8% in Q2 before gradually easing toward 2.5% by 2028.
@firstsquawkReserve Bank of Australia: Forecasts assume additional rate increases and a gradual decline in oil prices over the medium term.
@firstsquawkReserve Bank of Australia: GDP growth is projected to remain weak, averaging well below historical norms through the forecast horizon.
@firstsquawkReserve Bank of Australia: Unemployment is expected to edge higher over time, reflecting slower economic momentum.
@firstsquawkReserve Bank of Australia: Higher energy prices are expected to create broader second-round inflation effects across the economy.
@firstsquawkReserve Bank of Australia: Most members supported a rate increase, while one member preferred no change in policy.
@firstsquawkReserve Bank of Australia: The Middle East conflict has already pushed up fuel and commodity prices, feeding into inflation.
@firstsquawkReserve Bank of Australia: Inflation is expected to remain above target for an extended period, with upside risks still present.
@businessAustralia’s central bank raised its key interest rate for a third consecutive meeting, underscoring its determination to tame stubbornly strong inflation
@10newsau#BREAKING: The Reserve Bank of Australia has, as expected, announced a rate rise of 0.25%, bringing the official cash rate up to 4.35%. More to come.