RBA Raises Cash Rate Target 50bps To 2.35%

By Sophia Rodrigues

(Sydney, September 6, 2022)—The Reserve Bank of Australia raised the cash rate target by 50 basis points to 2.35% and issued a hawkish statement that points to the risk of more hikes.

The RBA said the...

RBA Lists Inflation Expectations, General Psychology Shift As Key...

--Underlying inflation forecast to peak at 6% end-2022, 3.8% end-2023, 3.0% end-2024
--Forecasts assume 3% cash rate end-2022, decline little by end-2024
--Inflation expectations, general inflation psychology shift are uncertainties...

RBA Lowe Talks About Inflation Expectations, References 1970s

RBA Lowe Talks About Inflation Expectations, References 1970s

--Lowe talks about Inflation expectations first time in Australia’s context
--Lowe references lesson from 1970s  inflation shock
--Level of Interest r...

RBA Ellis: Watching Out For Rise In Actual Housing Rents Paid

--Rise in actual housing rents paid something to watch out for
--Expect price “shift” as demand for new housing fades, interest rates rise
--But difficult to know when that will happen
--Fall in average household s...

RBA Kent: Not Selling Bonds To Avoid Perception Of “Seller”

From RBA Assistant Governor Christopher’s speech Monday
--RBA considered options to reduce Exchange Settlement balances more quickly
--RBA currently has no plans to sell bonds from its portfolio
--RBA wants to ensure mar...

RBA Began Rate Hiking Cycle On Rapidly Evolving Inflation, Growth...

--Inflation outlook much stronger than anticipated few months ago
--Terms of trade to reach new peak in 1H of 2022, remain higher thereafter
--RBA considered “rapidly evolving” inflation, growth outlook at May meeting RESERVE-BANK-OF-AUSTRALIA, 06 May 2022, 11:45 AM