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

Westpac economists expect Australia house prices to rise 5% in 2020

Economists at Westpac expect Australia's house price upswing to continue in 2020, rising 5%, but with getting cap...

Published on : 25 Nov 2019 , 11:55 AM
Moody's warns profits of big four Australian banks under pressure

Profitability of the big four Australian banks is under pressures from low interest rates amid weak credit growt...

Published on : 25 Nov 2019 , 03:35 PM
Australia Oct Labor Data Dovish for RBA Dec Meeting

Australia's unemployment rate rose to 5.3% in October from 5.2%, due to 19,000 fall in employed numbers. This was...

Published on : 14 Nov 2019 , 12:00 AM
Why RBNZ will Hold OCR at 1%

I am a bit surprised with market reaction to RBNZ's inflation expectations survey yesterday. While I acknowledge...

Published on : 13 Nov 2019 , 12:00 AM
Market Pricing for RBNZ Cut --How Much is "Will do"?

In their markets outlook on Nov 11, economists at BNZ wrote, "RBNZ shouldn’t cut this week but probably wi...

Published on : 13 Nov 2019 , 12:00 AM
What does RBA's Gentle Turning Point Refer to?

RBA Governor Philip Lowe first referred to gentle turning point at the Parliamentary testimony in August when he said...

Published on : 07 Nov 2019 , 12:00 AM
Expect Dovish RBA Statement, Refined Forward Guidance

It is very unusual for both market and economists to be strongly expecting a particular outcome (hold) for a RBA boar...

Published on : 05 Nov 2019 , 12:00 AM
Australia: More Reason to Buy vs Rent Dwelling

More reason to buy vs rent? For the first time since at least 2007, gross rental yields for properties in Australia&#...

Published on : 01 Nov 2019 , 12:00 AM
Will RBA Debate Further Easing at Nov Meeting?

Even before the RBA Nov board meeting begins, I am curious to find out if there will be a vigorous debate about...

Published on : 30 Oct 2019 , 07:21 AM
RBA Should Cut Now to Avoid QE

A few weeks back I wrote an article about how in theory the RBA could avoid QE, but to do so requires continuation of...

Published on : 31 Oct 2019 , 07:15 AM