Canberra: The Central Bank of Australia decided on Tuesday to increase the key interest rate by 50 basis points, which came in line with market expectations, indicating the resilience of the economy and the high rate of inflation.
The policy board of the Reserve Bank of Australia, headed by Governor Philip Lowe, decided to increase interest rates by 50 basis points to 1.35 percent, compared to 0.85 percent before the increase.
Lowe said, “the resilience of the economy and the higher inflation mean that this extraordinary support is no longer needed.”
“The size and timing of future interest rate increases will be guided by the incoming data and the board’s assessment of the outlook for inflation and the labor market,” he added.
The Bank expects to take further steps towards normalizing monetary policy conditions in Australia in the coming months.
