Economic Buzz: Australia Central Bank Raises Interest Rate By 25Bps

6 Dec 2022 , 10:42 AM

Australias central bank raised its key interest rate by a quarter point again on Tuesday, as widely expected. The policy board of the Reserve Bank of Australia decided to lift the cash rate target by 25 basis points to 3.10 percent. The board reiterated that it expects to increase interest rates further over the period ahead, but it is not on a pre-set course. Policymakers observed that that monetary policy operates with a lag and that the full effect of the increase in interest rates is yet to be felt in mortgage payments. Household spending is likely to slow although the timing and extent of this slowdown is uncertain.Powered by Commodity Insights