Dow Jones Newswires: Reserve Bank of Australia delivers 9th straight rate hike, stays hawkish

by | Feb 6, 2023 | Stock Market

SYDNEY — The Reserve Bank of Australia delivered a record ninth consecutive interest rate rise at its first policy meeting for this year, citing the stubbornness of inflation pressures and increased potential for a big jump in wages. RBA Gov. Philip Lowe on Tuesday announced a rise in the official cash rate to 3.35% from 3.10%, saying the economy was witnessing broad demand pressures despite a rapid exit from emergency interest rate settings since May last year.

“The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary,” Lowe said in a statement. “The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.” The RBA’s hawkish outlook reflects its disappointment that core inflation in the fourth quarter rose 6.9% on year, beating its forecast for a 6.5% rise. Annual services inflation also rose from 3.1% in June to 5.5% in December. “Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy,” Lowe added. There i …

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