The Reserve Bank of Australia raised interest rates by 25 basis points, to reach 3.60%, as expected at the bank’s meeting that took place today, Tuesday, March 7, for the tenth time in a row, bringing interest levels to their highest levels since May 2012.
The interest statement issued by the bank stated that inflation in Australia has reached its peak and is expected to start to decline due to global developments and the decline in demand in Australia. It is expected to reach 3%, the bank’s target in 2025.
Gross domestic product increased by 0.5% in the fourth quarter of last year and 2.7% over the course of the year and is expected to be lower in the next two years due to the tightening of financial conditions and the decline in housing construction times, while unemployment rates are still at their lowest levels in fifty years, but with expectations To rise with expectations of slowing growth.
The bank affirmed that it is committed to restoring inflation to the bank’s target range of 2-3%, stressing that there are strong upcoming interest rate increases in the coming months, but stressed that the board will pay attention to developments in the global economy, trends in household spending, inflation expectations and the labor market, indicating that the next interest rate hike will depend on data. upcoming economic.
The reaction of the Australian dollar was negative, and the pair fell by more than 50 points against the US dollar, as the markets began to see a possible halt to tightening monetary policy coming from the Australian Bank.
01/11/2024
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