The Reserve Bank considered a larger 50 basis point interest rate hike in February to counter persistent inflation; it’s been revealed.
The central bank’s board deliberated over the move as well as a 25-point increase to the official cash rate earlier in the month but ultimately landed on the smaller rise.
Leaving the rate unchanged was not discussed despite members having considered pausing it in December.
The board decided there was less need to revert to 50bps hikes as interest rates had already been lifted considerably from 0.1 percent in April last year. The official cash rate is now at 3.35 percent….