The Reserve Bank of Australia on Tuesday raised the cash rate 25bps to 4.85%, an
18-year high and the fifth hike this year, extending one of the most aggressive
tightening cycles among developed economies. The nine-member rate-setting board
approved the move in a 6-3 split. In its statement the RBA said the committee
will continue to take the measures it judges necessary to ensure inflation
returns sustainably to target. Governor Bullock will hold a press conference at
3:30pm Sydney time and is expected to be asked about the likelihood of further
hikes amid persistent inflation, global energy shocks and domestic capacity
constraints.
