The Reserve Bank of Australia (RBA) has raised the official cash rate to 1.85 percent with another 0.5 percent increase, in line with market expectations.
Following the board meeting on Aug. 2, RBA governor Philip Lowe said in a statement that the recent rate hikes were necessary to bring inflation down and balance demand and supply in the Australian economy.
“The board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path,” he said.
“The size and timing of future interest rate increases will be guided by the incoming data and the board’s assessment of the outlook for inflation and the labour market.”…