The Reserve Bank of Australia raised the cash rate by 25bps to 2.85% during its November 2022 meeting, matching market forecasts.
Report informs, citing Trading Economics, that the move marked the seventh straight rate hike, taking borrowing costs to a level not seen since April 2013, with the board mentioning further rate hikes will be needed as inflation in Australia is too high.
The committee added that it now saw inflation peaking around 8% this year, compared with its previous forecasts of 7.75%. Inflation is expected at around 4.75% in 2023, and a little above 3% in 2024.
The board reiterated that it remained resolute in its commitment to bring inflation to target levels and will do what is necessary to achieve that.
The size and timing of rate increases will be determined by the incoming data. The board also increased the interest rate on Exchange Settlement balances by 25bps to 2.75%.