The Reserve Bank of Australia (RBA) has lifted the cash rate by another 0.5 percent to 1.35 percent at its board meeting on July 5, continuing its effort to bring inflation under control.
In a statement released after the meeting, RBA governor Philip Lowe said the central bank’s move was necessary to end the unconventional monetary policy implemented following the COVID-19 pandemic.
“Today’s increase in interest rates is a further step in the withdrawal of the extraordinary monetary support that was put in place to help ensure the Australian economy against the worst possible effects of the pandemic,” he said.
“The resilience of the economy and the higher inflation mean that this extraordinary support is no longer needed.”…