The Bank of Australia raised interest rates for the fourth month in a row

The Reserve Bank of Australia (RBA) raised its cash rate by 50 basis points to 1.85% after the end of its policy meeting in August, according to Iran Economist, which represents a significant increase of 175 basis points from May in the most severe period. The decline is from the early 1990s.

However, Reserve Bank of Australia governor Philip Lowe made the policy outlook more conditional.

The board expects to take further steps toward normalizing monetary conditions in the coming months, but is not on a predetermined path, Lowe said.

Given that Low had repeatedly stated that the Reserve Bank of Australia’s board wanted to push rates to a neutral level of at least 2.5%, while theoretically neither stimulating nor delaying economic growth, this move was seen as a It was considered incorrect by the markets.

Investors responded with the local dollar falling 0.6 percent to $0.6977, as three-year bond futures rose 10 ticks to 97.270 on market speculation about how much rates will eventually rise.

Lowe also outlined the Reserve Bank of Australia’s new economic forecasts, saying consumer price inflation is now expected to peak at around 7.75 per cent, up from seven per cent in the past and 6.1 per cent in the June quarter.

Economic growth was predicted to be 3.25% in 2022 and 1.75% in each of the following years. Earlier, the bank had forecast growth of 4.2 percent in 2022 and 2.0 percent in 2023.