RBA presses go on the cash rate increase

A reasonable trajectory for the RBA to follow would be a target cash rate of 1 percent to 1.25 percent by the end of this year, writes Brendan Rynne.

The Reserve Bank of Australia (RBA) has pressed ‘go’ on the interest rate tightening cycle and lifted the cash rate by 0.25 percent. The statement by Governor Lowe noted that the resilience of the economy meant "now was the time to begin withdrawing some of the extraordinary monetary support". It also recognised that, as shown in the latest CPI data released last week, inflation is now higher and more pervasive across the whole economy. Combined with the anecdotal market evidence that...

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Authors: Brendan Rynne

Published Date: 04 May 2022