The Reserve Bank of Australia (RBA) has announced a 10th consecutive interest rate hike, taking the official cash rate to the highest level in 11 years.
However, there are signs that the current monetary tightening cycle may end soon as the risk of a recession emerges.
On March 7, the RBA board decided to lift the official cash rate by another 0.25 percent to 3.6 percent in an effort to bring down inflation.
While the board said domestic inflation could have peaked, it noted that services inflation still remained high and housing rent was growing at the fastest rate in some years.
The board members were also concerned about the risk of a wage-price spiral due to a tight labour market and the uncertainty around the timing and extent of the slowdown in household spending….