By Fabian Cotter | 01 November 2022 | Mortgage Business
01 November 2022
In a call that could have gone each way, the central bank has announced a 25 basis points hike for its Melbourne Cup Day rate decision.
The Reserve Bank of Australia (RBA) has delivered a 25-bp rate rise, adding to the misery of all mortgage holders who may have lost money on today’s (1 November) Melbourne Cup race.
Following its monthly board meeting for its monetary policy decision on Tuesday afternoon (1 November), the RBA announced it was raising the official cash rate to 2.85 per cent.
The November announcement follows on from a 25-bp increase in October, which had itself been an anomaly following the 50bp rises announced in September, August, July and June.
It means that the cash rate has increased by 275 basis points since the rate rising cycle began in May 2022.
The move to increase the cash rate comes as the RBA attempts to curb rising inflation.
Indeed, speaking of the decision, RBA governor Philip Lowe commented: “As is the case in most countries, inflation in Australia is too high. Over the year to September, the CPI inflation rate was 7.3 per cent, the highest it has been in more than three decades.”
In a call that could have gone each way, the central bank has announced a 25 basis points hike for its Melbourne Cup Day rate decision.
The Reserve Bank of Australia (RBA) has delivered a 25-bp rate rise, adding to the misery of all mortgage holders who may have lost money on today’s (1 November) Melbourne Cup race.
Following its monthly board meeting for its monetary policy decision on Tuesday afternoon (1 November), the RBA announced it was raising the official cash rate to 2.85 per cent.
The November announcement follows on from a 25-bp increase in October, which had itself been an anomaly following the 50bp rises announced in September, August, July and June.
It means that the cash rate has increased by 275 basis points since the rate rising cycle began in May 2022.
The move to increase the cash rate comes as the RBA attempts to curb rising inflation.
Indeed, speaking of the decision, RBA governor Philip Lowe commented: “As is the case in most countries, inflation in Australia is too high. Over the year to September, the CPI inflation rate was 7.3 per cent, the highest it has been in more than three decades.”
https://www.mortgagebusiness.com.au/economy/17358-2-85-november-cash-rate-announced