{"id":40047,"date":"2022-06-07T05:51:02","date_gmt":"2022-06-07T05:51:02","guid":{"rendered":"https:\/\/harchi90.com\/australias-central-bank-raises-rates-by-50-basis-points\/"},"modified":"2022-06-07T05:51:02","modified_gmt":"2022-06-07T05:51:02","slug":"australias-central-bank-raises-rates-by-50-basis-points","status":"publish","type":"post","link":"https:\/\/harchi90.com\/australias-central-bank-raises-rates-by-50-basis-points\/","title":{"rendered":"Australia’s central bank raises rates by 50 basis points"},"content":{"rendered":"
People walk past the Reserve Bank of Australia building in Sydney. On May 3, 2022, Australia’s central bank raised interest rates for the first time in more than a decade to curb soaring consumer prices.<\/p>\n
Saeed Khan | AFP | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Australia’s central bank on Tuesday raised interest rates by the most in 22 years and flagged more tightening to come as it battles to restrain surging inflation, stunning markets and sending the local dollar flying.<\/p>\n
Wrapping up its June policy meeting, the Reserve Bank of Australia (RBA) lifted its cash rate by 50 basis points to 0.85%, wrong footing investors who had wagered on a move of either 25 or 40 basis points.<\/p>\n
“Given the current inflation pressures in the economy, and the still very low level of interest rates, the Board decided to move by 50 basis points today,” said RBA Governor Philip Lowe in a statement.<\/p>\n
“The Board expects to take further steps in the process of normalizing monetary conditions in Australia over the months ahead.”<\/p>\n
The central bank had already lifted rates by a quarter point in May, the first increase since 2010, and many had thought it would stick to quarter-point moves. The last time it hiked by more was in early 2000.<\/p>\n
Investors sent the local dollar up 0.4% to $ 0.7223, while yields on three-year bonds shot up 16 basis points to 3.27% and levels not seen since early 2012.<\/p>\n<\/div>\n