The Reserve Bank has raised the official cash rate (OCR) by 50 basis points to 5.25 per cent.
The decision is in line with expectations and takes the benchmark rate to its highest level since late 2008.
The Reserve Bank's Monetary Policy Committee reviews the OCR seven times a year.
It uses the OCR to "achieve and maintain price stability" and "support maximum sustainable employment".
The government requires the bank to keep inflation between 1 per cent and 3 per cent over the medium term with a focus on the 2 per cent midpoint.
The Reserve Bank says increasing the OCR increases interest rates and helps bring inflation down.
On Tuesday, the Reserve Bank of Australia left its cash rate unchanged, at 3.6 per cent, to assess the impact of the 10 rate rises so far, but warned it would resume if needs be.
More to come...
1 comment
Expected
Posted on 05-04-2023 15:56 | By Kancho
The Reserve Bank and the government admit they have engineered this to get the economy to go into recession . So with mortgage and rental arrears increase remember why. The other figures lately is declining income from our meat export and fonterra reducing payouts. So with all costs increasing and extra regulation costs farmers are struggling as is everyone. Fuel going up you name. Australia fairing much better and attractive for our skilled workers .
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