Meetings from October board meeting show Reserve Bank’s smaller rise took into account lower growth due to other nations’ rate hikes
The Reserve Bank’s decision to reduce the size of the interest rate increases this month had been “finely balanced” with the risk of a global economic slowdown but further interest rate rises are likely to be required, minutes from the October board meeting show.
Earlier this month, the RBA surprised many economists and the markets by hiking its cash rate by 25 basis points – half the amount expected – to 2.6%. The move snapped a record run of four consecutive increases of half a percentage point, with the smaller rise making Australia the first among advanced economies to make such a move, the RBA noted.
Continue reading…Meetings from October board meeting show Reserve Bank’s smaller rise took into account lower growth due to other nations’ rate hikesThe Reserve Bank’s decision to reduce the size of the interest rate increases this month had been “finely balanced” with the risk of a global economic slowdown but further interest rate rises are likely to be required, minutes from the October board meeting show.Earlier this month, the RBA surprised many economists and the markets by hiking its cash rate by 25 basis points – half the amount expected – to 2.6%. The move snapped a record run of four consecutive increases of half a percentage point, with the smaller rise making Australia the first among advanced economies to make such a move, the RBA noted. Continue reading…