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Australian central bank raises benchmark interest rate from 1.35% to 1.85%

The Central Bank of Australia (RBA) decided to raise the benchmark interest rate by 0.5 percentage point, from 1.35% to 1.85%, at its monetary policy meeting on Tuesday (2). ).

In the last interest rate hike, the monetary authority had already raised the rate by 50 basis points, from 0.85% to 1.35%.

The RBA expects to take further steps in the process of normalizing monetary conditions in Australia in the coming months.

The size and timing of future interest rate hikes will be guided by data received and the Board’s assessment of the outlook for inflation and the labor market, RBA President Philip Low said in a statement.

Regarding the job market, Low points out that there is tightening at the moment, and that, at 3.5%, the unemployment rate in the country is the lowest in 50 years.

The central bank expects inflation to peak in Australia later this year and then fall back into the target range of between 2 and 3%.

“The expected moderation in inflation reflects the ongoing resolution of global supply-side problems, the stabilization of commodity prices and the impact of rising interest rates,” says Low.

Source: CNN Brasil

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