At their monetary policy meeting on December 6, members of the board of directors of the Reserve Bank of Australia (RBA) have decided to increase their official cash rate (OCR) by another 25 basis points (bp), from 2.85% to 3.10%, as widely expected.
The decision to raise interest rates on Tuesday meant the third consecutive quarter-point hike by the RBA, adding a total of 300 basis points in rate hikes in eight months.
According to the latest Reuters survey, the average expectation is for a terminal rate of 3.60%.
On the RBA rate decision
The Bank of Australia announces the interbank interest rate. This rate affects a range of interest rates set by commercial banks, building societies and other institutions for their own borrowers and depositories. It also affects exchange rates. If the Bank of Australia is firm on the inflationary outlook for the economy and increases rates, this is bullish for the Australian dollar, while a decline in inflationary pressures will be bearish.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
