RBA raises cash rate 50bps to 0.85%

By Sophia Rodrigues

Published On 07 Jun 2022 , 02:47 PM

The Reserve Bank of Australia raised the cash rate target by 50bps to 0.85%. The rate on Exchange Settlement balances was also raised by 50bps to 0.75%.

Key headlines:
--Expects to take further steps in policy normalization
--Committed to do what is necessary
--Inflation has increased significantly. Higher than earlier expected
--Terms of trade at record high
--Higher electricity, gas prices means near-term inflation is likely to be higher than expected a month ago
--Upswing in business investment
--Household spending one source of uncertainty…will pay close attention
--Econ resilience and higher inflation means extraordinary monpol support no longer needed
--Size and timing of future rate increase to be guided by incoming data

 

LATEST SNIPPETS

RBA buying A$3B bonds, April 2026-April 2029 maturity

The RBA is continuing with its bond-buying spree under the yield target policy but after two days of focusing on the...

Published on : 30 Mar 2020 , 11:57 AM
RBA to publish minutes on April 1 of special March board meeting

RBA will publish on April 1 the minutes of the special monetary policy announcement made on March 19. The meeting too...

Published on : 23 Mar 2020 , 06:15 PM
RBA Parliamentary Hearing Bit Unusual But Not Extraordinary

RBA deputy governor Guy Debelle will be appearing before the Economics Legislation Committee in Canberra late evening...

Published on : 04 Mar 2020 , 03:26 PM
Ex-centralbanker Says RBA Might Do 25+25, Not 50

An ex-centralbanker with strong experience in monetary policy during the global financial crisis says the RBA is more...

Published on : 02 Mar 2020 , 02:44 PM
Westpac Evans Expects RBA Cut Tue, QE by mid-year

Not much forecasting on RBA by Westpac's chief economist Bill Evans other than a 25bps cut in the cash rate...

Published on : 02 Mar 2020 , 11:14 AM
Australia Westpac-MI Consumer Sentiment Up But House Price Expectations More Imp For RBA

Consumer sentiment rose 2.3% to 95.5 in February, more than rebounding from the 1.8% fall in January, the Westpac-Mel...

Published on : 12 Feb 2020 , 10:41 AM
My tweets from first session of RBA's Parliamentary testimony today

RBA Lowe: If the unemployment rate were to be moving MATERIALLY in the wrong direction n there was no further progres...

Published on : 07 Feb 2020 , 10:59 AM
Westpac's Evans Now Expects RBA Cut in April, Aug (Previously Feb, June)

Westpac's chief economist Bill Evans has pushed back his forecast for RBA cash rate cut to April from February, c...

Published on : 24 Jan 2020 , 11:26 AM
ANZ No Longer Forecasting RBA Feb Cut

Economists at ANZ have removed RBA cut in February from their forecast following the strength in employment in Novemb...

Published on : 23 Jan 2020 , 01:37 PM
Australia Consumer House Price Sentiment Could Justify RBA Hold in Feb

Consumer sentiment fell 1.8% to 93.4 in January from 95.1, the Westpac-Melbourne Institute Index of Consumer Sentimen...

Published on : 22 Jan 2020 , 11:36 AM