Economic Buzz: Australia Central Bank Raises OCR By 50 Bps To 2.35%

6 Sep 2022 , 10:28 AM

The Reserve Bank of Australia, at its September 6 monetary policy meeting, announced a 50 basis points (bps) rate hike, raising its official cash rate (OCR) from 1.85% to 2.35%. The rate hike decision was widely anticipated and marked the fourth straight half percentage point increase by the central bank and the fifth rate hike since May. RBA Board said it is committed to doing what is necessary to ensure inflation returns to target. The board is committed to returning inflation to the 2-3 per cent range over time. It is seeking to do this while keeping the economy on an even keel. The size and timing of future increases will be guided by the data and outlook for inflation and labour market, the board stated. Meanwhile, inflation is expected to peak later this year and then decline back towards the 2-3 per cent range. Medium-term inflation expectations remain well anchored. The Australian economy is continuing to grow solidly and national income is being boosted by a record level of the terms of trade, the board added. Powered by Commodity Insights