The Reserve Bank of Australia (RBA) raised the official cash rate by 0.25% from a record low of 0.1% on 3 May 2022. The cash rate now stands at 0.35%.
This was the first hike since November 2010 and marks the beginning of the end of ultra-cheap money. It comes off the back of a strong inflation report last week, which blew the RBA’s estimates out of the water.
Following its April meeting, the RBA suggested that the Board were inclined to wait until the latest inflation and wages reports were released. But with the surge in inflation, and wage pressures increasing across the economy as businesses compete for workers in a tight labour market, the RBA couldn’t afford to wait any longer.
Hear from Jarek Kowcza, BT’s Senior Economist to find out where interest rates are likely to go over the next year, and the outlook for the economy, unemployment and inflation.
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Things you should know
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