Australia Raises Interest Rates For The First Time In Over A Decade.
Australia raised its interest rates for the first time in more than a decade, a move that was widely anticipated as consumer prices rose. Its central bank announced on Tuesday that the cash rate would be raised by 25 basis points to 0.35 percent, the first increase since November 2010. The Reserve Bank of Australia’s governor, Philip Lowe, stated that the time has come to begin withdrawing some of the “extraordinary monetary support” that was put in place to assist the Australian economy during the pandemic. “The economy has proven to be resilient, and inflation has increased faster and to a higher level than expected,” Lowe said in a statement. “There is also evidence that wage growth is accelerating.” Given this, as well as the extremely low level of interest rates , it is time to begin the process of normalizing monetary conditions.” According to the median forecast of 32 economists polled by Reuters, the increase was greater than the analyst estimate of 15 b...
