Australia's Central Bank Defies Expectations with 12th Interest Rate Hike and Warns of More to Come
TL;DR Summary
The Reserve Bank of Australia (RBA) has raised its cash rate by 25 basis points to 4.1%, the highest since April 2012, and put more hikes on the table. The RBA is getting nervous about inflation expectations becoming unanchored and surging labor costs that aren’t matched by productivity gains. The RBA's hawkishness surprised observers who had counted on a re-pause. The ASX 200 stock index dropped 1.2% in a mini rug-pull, and the Australian dollar rose by 0.7% against the USD.
Topics:business#finance#inflation#interest-rates#labor-costs#monetary-policy#reserve-bank-of-australia
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- Australia Unexpectedly Raises Key Rate Bloomberg Television
- Australia's central bank hikes rates by 25 basis points, defies expectations CNBC
- Interest rates lifted again for 12th time in 13 months Sky News Australia
- Why Philip Lowe hiked rates a 12th time — and isn’t done yet Daily Telegraph
- View Full Coverage on Google News
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