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    Reserve Bank’s cash rate decision - going harder in fight against inflation

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    The RBA delivered a rate hike of 50 basis points today, taking the cash rate to 0.85%. It is the biggest move in 22 years. It follows a 25 basis point rate hike in May, which kicked off the RBA’s tightening cycle after headline inflation cracked 5.1% per annum in the March quarter.

    The consecutive rate rises more than fully unwind the 65 basis points of emergency rate cuts the RBA implemented at the start of the pandemic. And these back-to-back rate hikes, totalling 75 basis points, are the biggest in a two-month window since December 1994.

    It’s a strong signal that the RBA is prepared to move harder in the fight against inflation.

    Download – 7 June 2022 economic update.

    See our short video below to find out more.

    Economic Insights - 9 June 2022

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    RBA hikes rates as ultra-cheap money coming to an end

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    RBA turns corner, rates to rise in June

    The Reserve Bank’s (RBA) April board meeting quickly regathered the attention of headlines last week. The RBA has turned a corner and has laid the groundwork for its first cash rate hike in over a decade, making the question of ‘when’ all the more important.
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